Rare Book Monthly

Articles - January - 2013 Issue

And Then There Was One – Macmillan Settles eBook Price-Fixing Suit


Penguin has settled.

One more publisher accused by the U.S. Department of Justice of artificially fixing the price of eBooks has bowed out of the suit with a settlement. Penguin Group has joined Hachette, HarperCollins, and Simon & Schuster in settling the dispute with the Department of Justice. That leaves just one publisher – Macmillan – still in the suit, along with the firm with whom they allegedly conspired to fix prices – consumer technology giant Apple, the world's largest corporation. The suit, now between the DOJ and Apple/Macmillan, is scheduled to be heard in June 2013.

For a look at the mess leading up to this point, click here. Basically, Amazon set out to dominate the then new electronic book business by selling eBooks very cheaply, at prices not much more (occasionally less) than cost. It made it very hard for others to compete. The publishers did not like this pricing, because, although they were selling their books, they felt consumers would get so used to low prices, they could never raise them again. They were also concerned that if eBook prices were too cheap, they would have trouble selling more expensive paper copies.

Meanwhile, Apple wanted to sell eBooks, but not for an absence of profit. Apple likes to make money. The result, according to the Department of Justice, was that Apple and the publishers agreed to change the method by which they would set prices. Instead of a wholesale price, from which retailers could set their own prices, the publishers set the retail price, and allowed the retailers to make a commission (generally 30%). Those set retail prices, which Amazon was now obligated to use, were considerably higher than those Amazon previously charged. The DOJ looked at this and concluded it amounted to illegal price fixing.

On December 18, the DOJ announced that Penguin had joined the other three in abandoning their so-called “agency pricing” agreement with Apple (agency pricing is where the manufacturer, not the retailer, sets the retail price). According to the DOJ, “Before the companies began their conspiracy, retailers regularly sold e-book versions of new releases and bestsellers for, as described by one of the publisher’s CEO, the 'wretched $9.99 price point.' As a result of the conspiracy, consumers were typically forced to pay $12.99, $14.99, or more for the most sought-after eBooks.” Jamillia Ferris, Chief of Staff and Counsel at the DOJ’s Antitrust Division, added, “Since the department’s settlement with Hachette, HarperCollins and Simon & Schuster, consumers are already paying lower prices for the eBook versions of many of those publishers’ new releases and bestsellers.”

While the settlement has led to a reduction in some eBook prices, notably at Amazon, the settlement is being challenged by Apple. They believe their contracts with the publishers, in which the latter agreed to use the agency pricing model, are still legal and valid contracts. In other words, Apple maintains that the DOJ suit is bad law, and the publishers do not have a right to agree to a settlement which, in effect, overrides the Apple contracts with them. Apple considers those “agency” contracts to be legal and binding. If I were a betting man, I would bet against Apple on this claim, but I know betting is illegal, regardless of whether these contracts are, so I won't go there.

Stay tuned.

Rare Book Monthly

  • <b>Old World Auctions (March 21-28):</b> Lot 7. Ritter's unusual sun-dial world map, 1607. Est. $3500 to $4500
    <b>Old World Auctions (March 21-28):</b> Lot 16. Fascinating Japanese satirical map published prior to WWII, 1932. Est. $1400 to $2000
    <b>Old World Auctions (March 21-28):</b> Lot 30. Newton's 2" miniature terrestrial globe, 1833. Est. $3500 to $4500
    <b>Old World Auctions (March 21-28):</b> Lot 318. Braun & Hogenberg's first plan of Moscow in contemporary color, 1575. Est. $2750 to $3500
    <b>Old World Auctions (March 21-28):</b> Lot 346. One of the most decorative 18th century maps of Malta, 1680. Est. $1200 to $1500
    <b>Old World Auctions (March 21-28):</b> Lot 412. The first printed map devoted to the Pacific in full contemporary color, 1589. Est. $8000 to $10000
    <b>Old World Auctions (March 21-28):</b> Lot 425. Rare set of celebrated explorers of the New World, 1592. Est. $1900 to $2300
    <b>Old World Auctions (March 21-28):</b> Lot 436. Two superb miniature atlases bound in one volume with 98 maps, 1682. Est. $5500 to $7500
    <b>Old World Auctions (March 21-28):</b> Lot 445. Part IV of de Bry's "Grand Voyages" by Girolamo Benzoni, 1613. Est. $2000 to $2500
    <b>Old World Auctions (March 21-28):</b> Lot 447. Tallis' "History of the United States of America" in six volumes, 1850. Est. $1500 to $1800
    <b>Old World Auctions (March 21-28):</b> Lot 448. Mallet's miniature military masterpiece, 1672. Est. $1400 to $1700
  • <b>Swann Auction Galleries Mar 29: Printed & Manuscript African Americana</b>
    <b>Swann Auction Galleries Mar 29:</b> Malcolm X, Autograph Letter Signed, from prison, 1950. $20,000 to $30,000.
    <b>Swann Auction Galleries Mar 29:</b> Letter from Moses Walker, an enslaved Georgia man, to his mother at another plantation, 1854. $12,000 to $18,000.
    <b>Swann Auction Galleries Mar 29:</b> Signed cabinet card of Frederick Douglass, albumen photograph, Boston, circa 1879. $10,000 to $15,000.
    <b>Swann Auction Galleries Mar 29: Printed & Manuscript African Americana</b>
    <b>Swann Auction Galleries Mar 29:</b> Placard from the Memphis Sanitation Worker's strike, 1968. $10,000 to $15,000.
    <b>Swann Auction Galleries Mar 29:</b><br><i>The North Star,</i> volume 1, issue 27, Rochester, NY, 1848. $8,000 to $12,000.
    <b>Swann Auction Galleries Mar 29:</b> Hand-tinted tintype of John Brown, circa 1860. $4,000 to $6,000.
    <b>Swann Auction Galleries Mar 29: Printed & Manuscript African Americana</b>
    <b>Swann Auction Galleries Mar 29:</b> Poster signed & inscribed by Huey Newton, circa 1967. $4,000 to $6,000.
    <b>Swann Auction Galleries Mar 29:</b> Album of aerial views of the march on Montgomery, taken by federal troops, 1965. $3,000 to $4,000.
    <b>Swann Auction Galleries Mar 29:</b> Poster for the SNCC, photograph by Danny Lyon featuring John Lewis, circa 1962. $3,000 to $4,000.
  • <b>Bonhams: Fine Books and Manuscripts. March 9, 2018</b>
    <b>Bonhams, Mar. 9:</b> BEETHOVEN, LUDWIG VAN. Autograph Manuscript sketch-leaf part of the score of the Scottish Songs, "Sunset" Op. 108 no 2. [Vienna, February 1818]. Inscribed by Alexander Wheelock Thayer. $80,000 to $120,000
    <b>Bonhams, Mar. 9:</b> Violin belonging to Albert Einstein, presented to him by Oscar H. Steger, 1933. $100,000 to $150,000
    <b>Bonhams, Mar. 9:</b> EINSTEIN, ALBERT. Autograph Letter Signed ("Papa") to his son Hans Albert, discussing his involvement with the atomic bomb, September 2, 1945. $100,000 to $150,000
    <b>Bonhams: Fine Books and Manuscripts. March 9, 2018</b>
    <b>Bonhams, Mar. 9:</b> HAMILTON, ALEXANDER. Autograph Letter Signed, to Baron von Steuben, with extensive notes of Von Steuben's aide Benjamin Walker, June 12, 1780. $10,000 to $15,000
    <b>Bonhams, Mar. 9:</b> NEWTON, ISAAC. Autograph Manuscript in Latin, being detailed instructions on making the philosopher's stone. 8 pp. 1790s. $200,000 to 300,000
    <b>Bonhams, Mar. 9:</b> 1869 Inauguration Bible of President Ulysses S. Grant. $80,000 to $120,000
  • <b>19th Century Shop:</b> Charles Darwin on sexuality and the transmission of hereditary characteristics: Autograph Letter Signed to Lawson Tait. Down, 17 January [1877].
    <b>19th Century Shop:</b> MILTON, JOHN. <i>Paradise Lost. A Poem written in ten books.</i> London: 1667. A very rare example with the contemporary binding untouched and with a 1667 title page.
    <b>19th Century Shop:</b> Hamilton secures the ratification of the Constitution: <i>The Debates and Proceedings of the Convention of the State of New-York, assembled at Poughkeespsie, on the 17th June, 1788.</i>
    <b>19th Century Shop:</b> The social contract “Man is born free, and everywhere he is in chains”: ROUSSEAU, JEAN-JACQUES. <i>Principes du Droit Politique [Du Contract Social]</i>. Amsterdam: Michel Rey, 1762
    <b>19th Century Shop:</b> “The first English textbook on geometrical land-measurement and surveying”: BENESE, RICHARD. <i>This Boke Sheweth the Maner of Measurynge All Maner of Lande…</i>
  • <b>Forum Auctions: Fine Books, Manuscripts and Works on Paper. March 22, 2018</b>
    <b>Forum Auctions, Mar. 22:</b> Jenner (Rev. George Charles). <i>The Evidence at Large...Respecting Dr Jenner's Discovery of Vaccine Inoculation,</i> presentation copy from Edward Jenner to Rev. Rowland Hill, 1805. £4,000 to £6,000
    <b>Forum Auctions, Mar. 22:</b> Houdini (Harry).- Maggi (Girolamo). <i>De tintinnabulis liber postumus...de equuleo liber,</i> Harry Houdini's copy, Amsterdam, H. Wetstein, 1689. £600 to £800
    <b>Forum Auctions, Mar. 22:</b> Meyer (Henry Leonard). Coloured Illustrations of British Birds, and their Eggs , 7 vol. in 2 plus Illustrations of British Birds, 4 vol., 1842-50 and [1835-51]. £5,000 to £7,000
    <b>Forum Auctions: Fine Books, Manuscripts and Works on Paper. March 22, 2018</b>
    <b>Forum Auctions, Mar. 22:</b> Dickens (Charles). <i>An Entirely New Romantic Drama, in Three Acts, by Mr. Wilkie Collins, called The Frozen Deep,</i> 1857. £3,000 to £4,000
    <b>Forum Auctions, Mar. 22:</b> Lighthouses and Islands of Ireland, c. 125 drawings, 1867. £6,000 to £8,000
    <b>Forum Auctions, Mar. 22:</b> Shelley (Lady Jane). Diary, 1853 & 1860. £1,500 to £2,000
    <b>Forum Auctions: Fine Books, Manuscripts and Works on Paper. March 22, 2018</b>
    <b>Forum Auctions, Mar. 22:</b> Scottish Binding.- The Holy Bible, Containing the Old and New Testaments, bound in contemporary brown polished calf decorated with the figure of a Chinese spearman, by ?James Scott of Edinburgh, 1778. £2,000 to £3,000
    <b>Forum Auctions, Mar. 22:</b> Greene (Graham). <i>The Man Within,</i> first edition, signed by the author, 1929. £4,000 to £6,000
    <b>Forum Auctions, Mar. 22:</b> Mellan (Claude, 1598-1688). The Holy Face, or the Veil of St Veronica, [c. 1649 and later]. £800 to £1,200
    <b>Forum Auctions: Fine Books, Manuscripts and Works on Paper. March 22, 2018</b>
    <b>Forum Auctions, Mar. 22:</b> Desaguliers (John Theophilus). <i>A Dissertation concerning Electricity,</i> W. Innys, and T. Longman, 1742. £2,000 to £3,000
    <b>Forum Auctions, Mar. 22:</b> Le Jeune (Paul). <i>Relation de se qui s'est passé en la Nouvelle France en l'anné 1636 enuoyée au R.Pere Provincial de la Compagnie de Iesus en la Province de France,</i> 1637. £2,000 to £3,000
    <b>Forum Auctions, Mar. 22:</b> Stumpf (Johann Rudolph). <i>Gemeiner loblicher Eydgnoschafft Stetten, Landen und Völckern Chronicwirdiger thaaten beschreibung, </i> Zurich, Froschauer, 1586. £3,000 to £4,000

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