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The European Commission has opened a formal antitrust investigation into how Amazon distributes e-books.
The group will look closely at Amazon’s contracts with publishers to see if the terms are more favourable or to Amazon than to their competitors. The organization is concerned that favorable terms for Amazon may make it more difficult for other e-book distributors to compete with the e-commerce giant.
“Amazon has developed a successful business that offers consumers a comprehensive service, including for e-books,” stated Margrethe Vestager, EU Commissioner in charge of competition policy. ” Our investigation does not call that into question. However, it is my duty to make sure that Amazon’s arrangements with publishers are not harmful to consumers, by preventing other e-book distributorsfrom innovating and competing effectively with Amazon. Our investigation will show if such concerns are justified.”
By Gayle Sulik
Telecom giant AT&T is currently proposing a $39 billion buyout of T-Mobile. The purchase, according to the Department of Justice (DOJ), would have negative implications for the telecommunications market, so much so that the DOJ filed a civil antitrust lawsuit on August 31st to block the proposed acquisition, stating that it would “substantially lessen competition…resulting in higher prices, poorer quality services, fewer choices and fewer innovative products.” AT&T vowed to “vigorously contest” the matter. In addition to hiring 99 lobbyists and spending $11.7 million
