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| The US Justice Department has warned five major publishers that they could face legal action over ebook prices. Photograph: Shannon Stapleton/Reuters |
The five largest publishers, including Britain's Penguin Group,
face legal action from the US Justice Department for colluding to raise
the prices of electronic books, a source has told Reuters.
Several parties are said to have held talks to settle the potential antitrust case after an investigation into deals signed with Apple by Pearson-owned Penguin, Simon & Schuster, Hachette Book Group, Macmillan and News Corp's HarperCollins Publishers.
These publishers adopted an "agency model" in 2010 – around the time that Apple launched the iPad – allowing them to set the price of ebooks. In turn, Apple would take a 30% cut.
In December, the European commission said it was looking at the same five publishers in a potential price-fixing case.
Several parties are said to have held talks to settle the potential antitrust case after an investigation into deals signed with Apple by Pearson-owned Penguin, Simon & Schuster, Hachette Book Group, Macmillan and News Corp's HarperCollins Publishers.
These publishers adopted an "agency model" in 2010 – around the time that Apple launched the iPad – allowing them to set the price of ebooks. In turn, Apple would take a 30% cut.
In December, the European commission said it was looking at the same five publishers in a potential price-fixing case.
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