In the past 10 years we have seen significant change in the publishing industry

Question

In the past 10 years we have seen significant change in the publishing industry as more and more books are available through electronic means such as Amazon Kindles, Barnes and Noble Nooks, etc. There is a case where Apple was accused of violating the law regarding the pricing of e-books for its iPads. Answer these three questions; the first two have answers that are either correct or not; the third asks for your opinion and SUPPORT for that opinion.

1) Why were book publishers unhappy with Amazon's low prices for its e-books, and how did this translate to Apple charging a higher price?

2) What was the outcome of the case against Apple?

3) Since the market for books is competitive with many substitutes (no one is forced to buy an e-book; you can always buy the old-fashioned kind) do you think the outcome (discussed in question 2) was justified or not, and WHY?

Explanation / Answer

1. In 2007, Amazon introduced Kindle, a device which has collection of e-books for the readers. With the release of Kindle, Amazon became the giant online retailer in few months. This gave a massive launch in the books market. It came to be convenient and light-weighted to carry a wide collection of e-books. Soon, Kindle became beneficial for e-readers.

Amazon emerged as the bestsellers of e-books. Apple wanted to defeat the Amazon’s strategy. The publishers were petrified that low e-book cost price could give power and authority to Amazon in the book industry. They wanted to halt the Amazon's low pricing range in e-books. Therefore, Apple convinced the publishers to joins hands in the execution of the conspiracy against Amazon.

2. Apple consorted with five major book publishers to remove retail prices of the books and increment e-book prices. Amazon was rising in market share. Apple was scheming to cut the dominance of Amazon in the world of e-books. Therefore, Apple determined to join hands with publishers to increase e-books prices. Apple played the principal role in the execution of the plot with publishers. The court discovered Apple liable for making such plot that violated anti-trust laws. The Judge, Denise Cote of U.S. Department of Justice found captivative evidence against Apple. They found guilty and took action against Apple, the violator.

3. The U.S. Department of Justice found Apple guilty in this conspiracy. Since, Apple violated anti-trust and state laws, a trail on damages is set to go. Without Apple, the publishers could not make such plot to execute to work in raising e-books prices. Without Apple, no one could combat against Amazon in the conspiracy. Thus, the trial is set for Apple only and not for publishers. The five publishers have settled. This judgment was justified in the eyes of everyone especially book lovers. The defeat of Apple in the court was a big victory for books readers. There were no more high prices for the e-books.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.