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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsUS Justice Department threatens Apple and publishers with court battle
When Amazon first came on the scene, it was selling new books at a tiny profit margin over the publisher's price or even at a loss to get folks interested in its Kindle readers which the publishers weren't happy about at all.
Then Apple started building the iPad and suggested that ebook pricing should move to an "agency model", where the publishers set the price of the book and the retailer takes a 30 per cent cut. The problem was that Apple also said that publishers couldn't then let rival ebook shops sell the same book at a lower price.
Happier with this model, publishers pushed it out across the sector, insisting that other ebook retailers like Amazon accept it.
The US Justice Dept is accusing Apple and the publishers of acting together to push prices up, and therefore threatening to sue them for antitrust violations, the people familiar with the matter said.
http://www.theregister.co.uk/2012/03/08/us_justice_dept_apple_ebooks/
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