Hasta La Gadget!

After the European Commission accepted offers from Apple and four publishers to free up e-book pricing restrictions in December 2012, it’s now accepted Penguin’s commitment to do the same. Much like Penguin’s vow to the US DOJ, it will end its agency agreements with Apple and other retailers, and “most-favored nation” clauses will be absent from any new deals struck over the next five years. Most importantly, e-book retailers will now be able to control prices and discounts of Penguin’s catalog for two years. This legally binding pledge essentially brings an end to EC’s “competitive concerns,” as all involved in the original price-fixing investigation have now settled up.

Filed under: Apple

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Via: Reuters

Source: European Commission

The issue of e-book prices, and alleged price fixing, has come up again and again in recent years, with the focus most recently shifting to a Manhattan courtroom where Apple is at the center of an antitrust trial. After revealing new details of the company’s market share yesterday, Apple’s Eddy Cue has today offered another piece of surprising news: that he and Steve Jobs once discussed a potential deal that would see Apple stay out of the ebook market if Amazon agreed stayed out of music. There’s no indication that went beyond the early discussion phase, or actually involved any discussions with Amazon, but it would obviously raise considerable antitrust questions had it gone any further.

As CNET and The Verge report, the DOJ is hoping that revelation will bolster its case that Apple engaged in antitrust practices to inflate ebook prices across the market. On that front, Cue, who the DOJ describes as the “chief ringleader of the conspiracy,” reportedly acknowledged that the prices of some ebooks did go up from April of 2010 (when it opened its iBookstore) through to 2012, but he attributed that to publishers unhappy with Amazon’s $9.99 pricing. Cue’s facing further questioning from Apple’s attorneys this afternoon, with the trial expected to wrap up by the end of next week.

Filed under: Apple

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Source: CNET, The Verge

Google has no doubt been on pins and needles wondering whether or not the European Commission will accept the search engine changes it’s proposing to avoid an antitrust showdown. If what we’re hearing is right, Larry Page and crew might just get to relax in the near future: sources for the New York Times claim that the EU agency has accepted Google’s proposal. Reportedly, the terms of the deal are close to what had been mentioned last week. Google would have to explicitly label search results that come from its own services while sometimes showing those results from others. It would also have to test the results in the field to get feedback from both the Commission and competitors. While neither Google nor European officials have confirmed the apparent leak so far, any truth to the story could mean the long-running saga might draw to a close before it gets ugly.

Filed under: Internet, Google

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Source: New York Times

Google has spent the past couple years facing down antitrust accusations in Europe for pushing its web services over those of competitors. But, just as that case is coming to a close, the New York Times now reports that new anti-competitive allegations have been levied against Android. This new complaint was filed by a group called Fairsearch — whose members include old EU foes Microsoft and Nokia, plus Oracle and a host of travel booking websites — and claims that Google’s using Android as a way to deceive consumers into using Google apps instead of competitors’ software. The problem, as Fairsearch sees it, is that Google forces OEMs who use Android to unfairly place apps like YouTube and Gmail in prominent places on the desktop. Of course, this new complaint is just the beginning, so we’ll have to wait and see what the European Commission’s investigation into the matter uncovers, and how the folks in Mountain View respond.

Filed under: Microsoft, Nokia, Google

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Source: New York Times

The Federal Trade Commission’s absolution of Google after a lengthy investigation into alleged abuse of market power induced expected reactions from the principle players. Microsoft was infuriated. Google was triumphant and exuberantly overstated the FTC’s exit. (“Google’s services are good for users and good for competition.”) Lawyers and lobbyists bunched on both sides of the fence to issue scathing or praiseful statements. The court of common opinion is now divided between nodding approval and eviscerating censure. The comment hate being hurled at Google is partly derived from general monopoly-busting sentiment, but there is also a stuck-in-the-past misunderstanding of what Google has become.

Continue reading Editorial: FTC and Google — why the right decision feels so wrong to so many people

Filed under: Misc, Internet

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