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Apple involves into price fixing of E-book service

One who likes collecting books may spend much on hardback and hardback may be worth the price. But there are also cheaper paperback version could be collectible, not so expensive. They are purchased, read, and stored. But why a virtual book so expensive? Just flip on smart phones or tablet, no painting, no paper.

On Wednesday European Union launched an investigation to Apple and its five partner publishers: Hachette Livre, HarperCollins, Simon & Schuster, Pearson’s Penguin and Macmillan. They are suspected of price fixing. EU believes that they violated anti-trust laws in order to battle with Amazon over dominance in the booming E-book market. Amazon sells virtual books at only $9.99 or less, it rules over 70% of the E-book market and is free to sell E-book at the price chosen by itself.

Publishers think their E-books could be worth a lot more, and decided to agree on a model once the iPad tablet issued. This agreement would let publishers control the price while providing retailers like Amazon and Apple a fixed commission on each sale. Once the agreement is reached, e-book prices begin to rise.

“The Commission will in particular investigate whether these publishing groups and Apple have engaged in illegal agreements or practices that would have the object or the effect of restricting competition in the EU or in the EEA,” the European Union said.

“The Commission is also examining the character and terms of the agency agreements entered into by the above named five publishers and retailers for the sale of e-books,” it added.