Europe Starts Antitrust Investigations Into Amazon e-book Distribution

[engine]

The investigation will surely please publishers that have, perhaps, felt it unfair to disclose other terms which might favour other distributors.

The European Commission has opened a formal antitrust investigation into certain business practices by Amazon in the distribution of electronic books ("e-books"). The Commission will in particular investigate certain clauses included in Amazon's contracts with publishers. These clauses require publishers to inform Amazon about more favourable or alternative terms offered to Amazon’s competitors and/or offer Amazon similarterms and conditions than to its competitors, or through other means ensure that Amazon is offered terms at least as good as those for its competitors.

The Commission has concerns that such clauses may make it more difficult for other e-book distributors to compete with Amazon by developing new and innovative products and services. Europe Starts Antitrust Investigations Into Amazon e-book Distribution Arrangements [europa.eu]

EU Commissioner in charge of competition policy Margrethe Vestager said: "Amazon has developed a successful business that offers consumers a comprehensive service, including for e-books. Our investigation does not call that into question. However, it is my duty to make sure that Amazon's arrangements with publishers are not harmful to consumers, by preventing other e-book distributors from innovating and competing effectively with Amazon. Our investigation will show if such concerns are justified."

[fathom]

Not sure how that works.

These clauses require publishers to inform Amazon about more favourable or alternative terms offered to Amazon’s competitors and/or offer Amazon similar terms

How does publisher disclosures prevent competitors from innovating and competing effectively with Amazon? Sounds like keeping a level playing field level. IMHO

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These clauses require publishers to inform Amazon about more favourable or alternative terms offered to Amazon’s competitors and/or offer Amazon similarterms and conditions than to its competitors, or through other means ensure that Amazon is offered terms at least as good as those for its competitors.

In simple terms, you have to disclose to Amazon if there's a better deal, and then to offer that deal to Amazon. This investigation is there to ensure that the consumer is best served by the type of deal outlined in the investigation.

[fathom]

Or rather... This investigation best serves competitors EU business interests using the cover of what is best for the public.

Clearly the public isn't better serve by higher AMAZON PRICES... Or are they?

[inbound]

Or rather... This investigation best serves competitors EU business interests using the cover of what is best for the public.

Clearly the public isn't better serve by higher AMAZON PRICES... Or are they?

Amazon getting the lowest price from publishers might seem like a better deal for the public in the short term (if they provide a low price to consumers), but the long term is possibly a different matter.

Anti-competititive business practices can include what is described, as clearing out all of the competition with aggresive pricing allows a company to raise prices later. I'm not saying Amazon plan to do that, but the EU is well aware of what can happen - and often it's too late to act when all of the competition has been squeezed out. It's right that the EU act; Amazon, as a dominant player could be seen to be taking advantage (play our game or we won't stock your product) in order to gain an advantage.

[fathom]

Right... I concur, but Anti-Trust is actually Trust in advance of your para two.

All monopolies & non-monopolies pretend they aren't.