













Sources: Reuters, The Wall Street Journal

Comments     Threshold


RE: Interesting
By Shadowself on 3/8/2012 5:21:25 PM , Rating: 2
That really is the point.

Apple says that if you sell it to the *end customer* through Amazon for $9.00 then you must sell it to the *end customer* through Apple at $9.00.

It is up to the publisher to negotiate with Apple for something other than 30%. If Apple insists on 30% and the publisher does not like it then the publisher can either decide to sell that book through Apple or not.

Hell, all the publishers could walk away from Apple until Apple lowers its cut to 5%. Effectively that would kill Apple's bookstore as I doubt Apple would run the store on such thin margins. With Amazon and others out there, the direct impact to the publishers would be very small in the short term. They are just choosing to not put up a stink about Apple's 30% request. Why is Apple asking for 30%? Because that is what the major record labels agreed to for music. Apple just hit "copy and paste" on that.


Think of it as the exact opposite of price fixing.
Apple sells the item for $10.00, the publisher gets $7.00 and Apple gets $3.00.
The publisher lets another company sell that item for $9.00.
Apple requires that the publisher allow Apple to sell it for $9.00 too. Then the publisher gets $6.30 and Apple gets $2.70 (unless the publisher gets Apple to take less). Apple gets less by going to the lower price too.

Where is the "price fixing"?

In your own words, "Apple started this mess by letting the publishers set the prices..." The publishers are setting the prices, not Apple.

Again, this has nothing to do with price fixing. The price to the end customer is always the best price available.

Finally, you state, "Instead, the publishers said to charge the $10 price or they'll cut off all your books, you aren't allowed to go below the price floor for any reason." This is the **Publishers** dictating prices, not Apple. If the publishers wanted to go to $0.99 or even FREE Apple would still sell their books.(As I understand, it there are lots of FREE books on the Apple store for which Apple's 30% is ZERO.)

RE: Interesting




RE: Interesting

