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Amazon e-book Class Action Lawsuit

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Amazon e-book Class Action Lawsuit – Alleged Price Fixing

Publishers & Tech Giants Reportedly Facing Lawsuit Due To eBook Price-Fixing Class Action

Another class action was filed against Amazon and the country’s top book publishers for allegedly trying to fix prices on eBooks, giving Amazon an edge over the market.

Arizona’s Jeffrey and Susan Cook sued Amazon and HarperCollins Publishers, Simon & Schuster, Macmillan Publishing Group, Hachette Book Group, and Penguin Random House for violating the Sherman Act.

Another lawsuit was filed in January, a complaint alleging that Amazon and the top publishers’ anti-competitive contracts let the tech giant sell eBooks at a lower price compared to other retailer sites.

Further allegations also point that consumers are financially harmed by this as they are paying for prices fixed by the tech giant and the Big Five without the need of discounts, promo codes, and low-cost alternative business process that exists in a competitive market.

The contracts are said to ask the publishers to let Amazon know about their eBook distribution, allow access to Amazon e-book in the same timeframe other retailers are given access and tag eBook prices on the tech giant’s site no higher than what is set by its competitors.

This prevents Amazon’s competitors from increasing their market share or new businesses to get into the eBook market, giving Amazon the leverage to set prices of eBooks.

Compared to other single retail outlets in history, Amazon is the primary source customers buy eBooks from, making up 90% of eBook sales.

It gives them a lot of bargaining power, according to the lawsuit, allowing Amazon to swallow the independent bookstore industry.

About Amazon

It is a tech company headquartered in Seattle, Washington, and it focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.

They are also known to sell books, music, movies, housewares, electronics, toys, and other goods, either as a direct seller or as a middleman between other sellers and Amazon’s customers.

Editor’s Note on Amazon e-book Class Action Lawsuit:

This article is aimed to inform you of the recent class action allegations against Amazon and its e-book options. 

What are your thoughts on this piece? Are you affected by this lawsuit?

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