EU claims that ebook publishers’ agency model is illegal.

PC Speed on March 16, 2011 – 9:34 am -

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Big publishers are selling ebooks via the Agency model. Instead of selling the ebooks wholesale and giving the retailer the power to set the price, ebook publishers charge the customers and gives and the retailer a commission. The arrangement is violates EU anti-trust rules that prohibit cartels and other restrictive business practices.

The publishers contend that it’s not anti-competitive. They claim the agency model, Amazon could easily discount everyone else out of contention. But it seems that publishers are likely to lose. It’s not only the law but the consumer. Guardian

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