Apple, along with Simon & Schuster, Harper Collins, and Penguin, are facing a European Union investigation into allegations that they acted anti-competitively to set ebook prices and lock out competition from the market.
Publishers Hachette Livre and Verlagsgruppe Georg von Holzbrinck have also been named in the investigation.
The EU is looking into Apple’s part in possible ebook price fixing in Europe
“The Commission will in particular investigate whether these publishing groups and Apple have engaged in illegal agreements or practices that would have the object or the effect of restricting competition in the EU or in the EEA,” the European Commission said in a statement. “The Commission is also examining the character and terms of the agency agreements entered into by the above named five publishers and retailers for the sale of e-books.”
The Commission didn’t say exactly how Apple is involved, although it’s a safe bet that the company’s iBookstore will end up as part of the investigation at some point. Apple uses iBookstore to sell and distribute ebooks to iPhone, iPad and iPod touch owners through the iBooks app.
Apple also helped push ebook resellers into an agency model where publishers set prices, and also managed to land deals where titles couldn’t be sold for less at other online stores. Previously, resellers purchased books at a set price, then sold the titles for what ever price they wanted.
The iPad maker is also dealing with a class action lawsuit alleging that it, along with HarperCollins, Hachette Book Group, Macmillan, Penguin, and Simon & Schuster, that alleges the publishers and Apple worked together to drive up ebook prices. The agency model is at the heart of that issue, too.
“We intend to prove that Apple needed a way to neutralize Amazon’s Kindle before its popularity could challenge the upcoming introduction of the iPad, a device Apple intended to compete as an e-reader,” said Steve Berman, the attorney representing the class action.
Apple has not commented on the EU investigation.Apple has not commented on the EU investigation.