Judge rules for Amazon in eBook price fixing case

Calling the matter a “straightforward price-fixing case,” Cote ruled it “is not necessary to hold an evidentiary hearing” before approving the decree. “Given the voluminous submissions from the public and the non-settling parties, which describe and debate the nature of the alleged collusion and the wisdom and likely impact of settlement terms in great detail, as well as the detailed factual allegations in the Complaint, the Court is well-equipped to rule on these matters. A hearing would serve only to delay the proceedings unnecessarily.”

 

EBooks buyers, “should not be forced to wait until after the June 2013 trial to experience the significant anticipated benefits of the decree,” she adds. “The Government's August 3, 2012 motion for entry of the proposed Final Judgment is granted.”

 

The long-expected approval soundly rejected criticisms of the deal that had accumulated throughout the summer from hundreds of parties, including Barnes & Noble, the Authors Guild and the American Booksellers Association.

Publishers and authors predicted that in the long run, the settlement could allow the e-book marketplace to return to its state several years ago, when Amazon had close to 90 percent of the market and other retailers struggled to get a foothold.

"I think that everybody competing with Amazon in the e-book market had better fasten their seat belts," said Mike Shatzkin, chief executive of Idea Logical, a consultant to publishers. "I would expect Amazon to be leading the charge to cut prices on the most high-profile e-books as soon as the decision allows them to do so. As soon as that starts to happen, all the books that are competing with them will have to reconsider their prices."

Gina Talamona, a Justice Department spokeswoman, praised the ruling, saying "consumers will start to benefit from the restored competition in this important industry."

Amazon declined to comment Thursday. But when the settlement was announced in April, Amazon called it "a big win for Kindle owners" and said it looked forward to eventually lowering its prices on e-books.

Paul Aiken, the executive director of the Authors Guild, which vigorously opposed the settlement, said the biggest losers would be traditional independent bookstores. If the cost of a newly released e-book drops further, the bookstores will have more trouble selling hardcover books at their current prices, he said.

"It is an incredible, bizarre decision," Aiken said.

He said that if Amazon resumes its price cutting, as expected, it would have the benefit of a much bigger list of e-books than what was available several years ago.

"They can use those books to target traditional bookstores," he said.