Apple, Publishers, and How eBook Price Fixing Changed the Market
In 2009, several major publishers announced a huge pricing change for eBooks; retailers would sell them only at the price set by the publisher, and no one could apply any discounts or coupons. The move was anti-competitive and clearly aimed at attacking Amazon, but what really struck everyone was the company behind the curtain. Apple had just announced the iPad, and they seemed quite confident that the projected $12.99-$14.99 prices for iBooks would not be undercut, a suspicious claim since Amazon sold those titles for $9.99. The assumption was that Apple had worked with the publishers to create this price-fixed…