US has taken action against prices issue of ebooks

E-books

The Justice Department and 15 states filed a case against Apple Inc. and five major book publishers on Wednesday. They said that the companies cost consumers $100 million in the past two years by adding $2 to $5 to the price of the e-books.

[hana-code-insert name=’StumbleUpon’ /][hana-code-insert name=’Reddit’ /]Recently, the federal government has reached a settlement with three of the publishers – Hachette Book Group, Simon & Schuster and HarperCollins. However, the lawsuit against Apple and two other publishers – Macmillan and Penguin Group USA – is still ON.

US Attorney General Eric H Holder Jr and Sharis A Pozen, the acting director of the US Justice Department’s antitrust division, said the settlement “will begin to undo the harm caused by the companies’ anticompetitive conduct, and will restore price competition so that consumers can pay lower prices for their e-books”.

According to the settlement, publishers must have to terminate their e-book contracts with Apple, which states that no other retailers can sell e-books for a lower price. Publishers can not prohibit retailers to give discounts on e-books.