The suit claims the publishers and Apple colluded to break Amazon's discount pricing strategy with the sole intent of helping the iPad compete against the popular Kindle e-reader.
Furthermore, the suit claims that publishers, after discounting e-books for years to push adoption, feared Amazon's discounted prices would set a new (and permanent) low expectation for pricing of the books.
Says an attorney for the class-action suit:
Fortunately for the publishers, they had a co-conspirator as terrified as they were over Amazon's popularity and pricing structure, and that was Apple. We intend to prove that Apple needed a way to neutralize Amazon's Kindle before its popularity could challenge the upcoming introduction of the iPad, a device Apple intended to compete as an e-reader.
The five publishers in question control 85 percent of the most popular e-books and until the iPad's release, new releases were priced at $9.99. They now are priced in a range from $9.99 to $14.99.
Written by: Andre Yoskowitz @ 13 Aug 2011 23:25
