How will the ebook antitrust case affect AAPL, if at all?
This is a stupid, poorly thought out suit. Everyone is going to lose, except Apple and the consumer.
The only possible positive outcome would be that the publishers are forced to allow Amazon their previous policy of selling certain books at $9.99 (below cost). This would put the iBookstore at a slight competitive disadvantage, but Apple doesn’t care much since the Kindle store & app is also available on iOS. Ultimately, I think Apple’s plans for the iBookstore probably revolve around the education market.
Apple has assured consumers that there will always be access to content. They don’t need to rely on Amazon. But Amazon cannot afford to lose access to iOS devices; they do rely on iOS device owners.
DOJ is likely to lose e-book antitrust suit targeting Apple
Antitrust experts say feds have “far better case” for price fixing against publishers, three of which have settled, than they do against Apple.
Apple Fires Back at the Feds, Amazon (via All things Digital)
The DOJ?s accusation of collusion against Apple is simply not true. The launch of the iBookstore in 2010 fostered innovation and competition, breaking Amazon?s monopolistic grip on the publishing industry. Since then customers have benefited from eBooks that are more interactive and engaging. Just as we?ve allowed developers to set prices on the App Store, publishers set prices on the iBookstore.
I have yet to recall a DoJ antitrust lawsuit that protects a company that has seen its monopoly position erode and is seeking to reestablish it.
What the DoJ is saying with this action is “We want Amazon to continue its campaign to kill its competitors and cement its monopoly by dumping below-cost books in the market.”
For all I know, there really might have been collusion, but the DoJ won’t enhance competition in a market by handing it all neatly gift-wrapped to the largest player.
Is this the definition of irony or what?