Is the settlement really in the best (long term) interest of consumers?
Yesterday was the deadline for filing statements in opposition to the proposed settlement in the price fixing case between the Department of Justice and three publishers: Hachette, HarperCollins, and Simon & Schuster. The focus of the resistances by the publishers Macmillan and Penguin were that the DOJ had failed to provide economic analysis in support of the settlement. Macmillan argued that the DOJ should be required to prove that the settlement won’t send the ebook market back into the control of Amazon. Penguin asserted that the underlying allegation of the DOJ – that prices have increased under Agency pricing – has not been proved by the DOJ and that the DOJ should be required to provide economic analysis of its allegations.