The European Union has opened an investigation focusing on some publishers and Apple. The hypothesis is that a cartel was formed to influence the ebook market.
The European Union, represented by EU Competition Commissioner Joaquin Almunia, has decided to open a formal investigation against Apple, Hachette Livre, Harper Collins, Simon & Schuster, Penguin, and Verlagsgruppe Georg von Holzbrinck (Macmillan). The initial hypothesis is that the market for digital publishing and particularly ebooks has been manipulated by these five publishers, subsequently aided by the Cupertino-based company.
According to an official EU note, the commission is examining a possible mutual agreement reached between these publishing houses to restrict competition in Europe regarding the ebook sector.
Furthermore, contracts and agreements signed between publishers and distributors will be scrutinized.
The investigation was initiated following reports from European publishers and subsequent surprise inspections at the offices of the antitrust commission in Brussels, targeting the headquarters of the aforementioned five publishers involved in digital publishing.
The core hypothesis – which remains – is that there may have been deliberate agreements in place to keep ebook prices high.
In this context, according to the accusation, Apple would have indirectly facilitated this mechanism by proposing the sale of ebooks with prices at the publisher’s discretion rather than the retailer’s, following the model known as “agency”.
The EU commission will assess whether these practices, considered anti-competitive, are indeed real and, if so, whether they began concurrently with the launch of the iPad.
So far, these are the EU’s initial hypotheses. More definite information will certainly emerge soon, as the commission handling the case has stated it will be treated as a priority matter.
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