Pricing of E-Books Draws Incr. Antitrust Scrutiny

Connecticut Probes Pricing of E-Books - WSJ.com

Just when publishers and sellers of digital books had made peace over how to price electronic titles, the market is attracting antitrust scrutiny.

On Tuesday, Connecticut Attorney General Richard Blumenthal disclosed a preliminary review of the pricing agreements between five of the country's largest book publishers and two leading digital retailers: Apple Inc. and Amazon.com Inc.

The probe comes on the heels of a similar examination opened in June by the attorney general of Texas.

Mr. Blumenthal said he has sent letters to Amazon and Apple asking them to "meet with his office" to address his concerns that agreements in place may restrict rivals from offering cheaper e-books. For instance, he said, "both Amazon and Apple have reached agreements with the largest e-book publishers that ensure both will receive the best prices for e-books over any competitors."

Apple, Amazon and five publishers also have agreed to an "agency pricing" model. Under the agency model, publishers set their own retail prices. They receive 70% of the consumer price, with the retailers taking 30%.

"These agreements among publishers, Amazon and Apple appear to have already resulted in uniform prices for many of the most popular e-books—potentially depriving consumers of competitive prices," said Mr. Blumenthal in a prepared statement.
 
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