Justice Department Ready to Sue Over E-book Price Fixing

[Christopher Valen]

The Justice Department has told Apple and five of the nation's biggest book publishers that it will sue them for their alleged price-fixing of e-books unless the companies agree to change their business practices. We've discussed the possibly of this happening in previous posts. Here's a link to the full article:

http://business.financialpost.com/2012/03/08/u-s-may-sue-apple-over... 

[I. J. Parker]

Yes.  So what will be the fall-out?  I'm primarily involved with Amazon.

[Christopher Valen]

The fall-out will be lower prices on Amazon for e-books from major publishers, I.J., i.e. books priced no more than $9.99. Unfortunately––if publishers don't increase the percentage authors receive––less money for anyone who publishes with the Big Six. Once again, it's the authors taking it on the chin. Obviously, the winners will be consumers who can purchase the books for less.

[Benjamin Sobieck]

Interesting you mention $9.99. I think Amazon is shooting for a price range of $2.99 to $9.99. Those are now the only prices in KDP that will get you the 70% royalty. Not sure when that went into effect, but I noticed it yesterday.

[I. J. Parker]

Hmm.  My publisher lists some of my books at 12.99.  Does that mean they get only 35 %?  Or will Amazon force them to lower the price.

The 2.99 as the lowest price for 70 % has been effect for at least a year.  I don't know about the upper limits.

[Susan]

I think this has always been the case. 70% for books priced between 2.99 and 9.99

[Christopher Valen]

The fall-out will be lower prices on Amazon for e-books from major publishers, i.e. books priced no more than $9.99––and, unfortunately––if percentages for authors are not increased––less money for authors who publish with those same companies. Once again, it's the authors taking it on the chin. Obviously, the winners will be consumers who can purchase the books for less.

[I. J. Parker]

Ah.  Well, I stand to make only 15 % off my Big-6 books.  Presumably, it will discourage them from offering better deals to authors in the future.