Attorney General Richard Blumenthal is investigating agreements between the country’s largest e-book publishers and two of the largest sellers — Amazon.com and Apple — that may block competitors from offering cheaper e-book prices. Both Amazon and Apple have reached agreements with the largest e-book publishers that ensure both will receive the best prices for e-books over any competitors — contract provisions known as “most favored nation” (MFN) clauses.
In letters to Amazon and Apple, Blumenthal is calling on the companies to meet with his office to address these concerns. Publishers that have reached such agreements with Amazon and Apple include Macmillan, Simon & Schuster, Hachette, HarperCollins and Penguin. These agreements appear to deter certain publishers from offering discounts to Amazon and Apple’s competitors — because they must offer the same to Amazon and Apple. This restriction blocks cheaper and competitive prices for consumers.
The complete letter Blumenthal sent to Apple can be found
here.
