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Joining a list of probes (I, II) from Connecticut AG (and Senate candidate) Richard Blumenthal:...

Joining a list of probes (I, II) from Connecticut AG (and Senate candidate) Richard Blumenthal: deals Amazon.com (AMZN) and Apple (AAPL) are making with book publishers that he says seem to have resulted in "uniform," anticompetitive prices for e-books.
Comments (5)
  • D_Virginia
    , contributor
    Comments (2280) | Send Message
     
    I call this collusion by default.

     

    Market forces only work when there are a lot of them that exist in realistic competition.

     

    When you only have a couple of meaningful players (as you do here and in industries like cell providers, who all raised text message prices almost in unison a year or two ago), the market price is not "whatever the market will bear" it's whatever the 3-4 big players feel they can get away with.

     

    If Company A raises prices, Company B will also to stay competitive in profits -- since A and B are the only places to get the product anyway, it's not like they'll be driving customers to their competitors.
    2 Aug 2010, 12:56 PM Reply Like
  • dfbell
    , contributor
    Comments (1555) | Send Message
     
    Hmmmmm, amzn grinds a deal that results in low book prices and an even lower ereader prices ... and that is seen as anti-competitive by an attorney general running for high office. Even though their price is $3 less than aapl's.

     

    Blumenthal, I dont need protection from lower prices! I need protection from a candidate who lies about his war record.

     

    argh
    2 Aug 2010, 12:57 PM Reply Like
  • Duude
    , contributor
    Comments (3358) | Send Message
     
    He could have went the other way and dragged the book publishers in for price gouging but then who would pay the bill for his campaign?
    2 Aug 2010, 01:03 PM Reply Like
  • dfbell
    , contributor
    Comments (1555) | Send Message
     
    worse yet, they might publish a book about his military career.

     

    Another fine pint, amzn and aapl charge two different prices for ebooks. amzn is typically $9.99 and appl is $12.99.
    2 Aug 2010, 01:36 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    the key phrase in understanding this story is "Senate candidate Richard Blumenthal"
    2 Aug 2010, 01:37 PM Reply Like
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