
The latest news is that Apple has offered to settle
its e-book price fixing charge in Europe, but vows to fight a a
similar battle in America because the charges against it by the
Department of Justice are "simply not true". Forbes.com reports,
Apple
Offers E-Book Settlement: But Only in Europe, "The technology
company was initially tight-lipped about the US case but last week
broke its silence to declare itself innocent and paint itself as a
hero for breaking Amazon’s “monopolistic grip”. It said the iPad’s
bookstore “fostered innovation and competition ... However, it has
taken an altogether different approach in Brussels. JoaquĆn
Almunia, the European Union competition commissioner, said he has
received settlement offers from Apple and all the publishers other
than Penguin."
One speculation (by contributor, Tim Worstall) is, "As to why the
settlement in Europe I have a sneaking suspicion it’s because of the
size of the potential fines," implying that Apple might be trying to
stave out a potential hefty fine. Maybe. But I am inclined to think
that Apple is gambling on Europe being more sympathetic towards it
because it genuinely thinks it is promoting competition, and saving
the world from the likes of Amazon.
It is in Europe's DNA to side with the underdog, to protect workers
and small businesses (known, derisively, as socialism in America),
especially in an industry it gets very emotional about and regards
as a cultural heritage. When Amazon implemented free shipping in
France, it was found to be in violation of a law that disallowed
unfair discounting of books. Amazon already has a reputation for
being the bad guy in Europe. Apple might genuinely think that it
would get a fairer deal across the pond.
In the US, Amazon's practices are seen (by some) as morally wrong
but not illegal. Scorched earth business practices are legal in
America; as long as consumers 'benefit', jobs can be bangalored, and
small businesses shuttered. The stated goal of antitrust laws is
"consumer protection", which critics say does everything but.
All that might be changing, though. Wendy Milling says in another
story in Forbes.com,
The
DOJ's Mugging Of Apple Reminds Us That Antitrust Is Theft,
"The absurdity of the Department of Justice’s latest antitrust
charges against Apple has prompted a long overdue re-evaluation of
the validity of antitrust doctrine." She adds, "If an e-book seller
(Amazon) charges a price so low it takes a loss on its e-books to
gain market share, no charges are filed. If publishers
(HarperCollins, Penguin, etc.) agree to an agency model that
decreases their total revenue on e-books, charges are filed."
Will Apple be instrumental in changing the world yet again?