Last Week’s E-Book Antitrust Appeal Hearing Went Well for Apple

Philip Elmer-DeWitt, writing for Fortune:

At times Judge Jacobs came close to suggesting that the government had prosecuted the wrong company. At the very least, he said, a horizontal initiative “used to break the hold of a monopolist” ought not be found to be illegal per se. He likened any collusive conduct on the publishers’ part to “mice getting together to go put a bell on the cat.”

More laughter. More trouble for the government’s cause.

Two of the three judges on the appeal seemed to agree with what I’ve been arguing all along: (a) the agency model — where publishers set prices and Apple takes 30 percent — is not price-fixing; and (b) Amazon, with its monopoly share (80-90 percent) of e-book sales and predatory pricing scheme, is the company the DOJ should be investigating.

Monday, 22 December 2014