Department of Justice Decision Released

Dept. of Justice has determined that the proposed “final judgment” provides “an appropriate and effective remedy” for the antitrust violations. They are quoted as saying that the comments to dismiss the case were being submitted “by those who have an interest in seeing consumers pay more for e-books…”

The DoJ showed little interest in the comments from some of the big players in the industry, including Barnes & Noble, Books-A-Million and the Authors Guild. They go further to say that arguments that Amazon will eventually monopolize the e-book industry as “highly speculative at best.”

The DoJ also noted that not all authors objected to the settlement. Apparently, many mainstream or traditionally published authors were against the settlement. The largest group in favor of the settlement was self-published authors. In one comment by a group of self-published authors, the traditional publishers and literary agents were described as “… all kinds of middlemen which have gone from being indispensable to optional … “

The purpose of the Final Judgment is to 1) end the current collusion (price fixing); 2) restore competition eliminated by that collusion; and 3) ensure compliance. Specifically, the settlement enforces the following: A) Refrain for two years from entering into contracts containing retail price restrictions and price commitment mechanisms; B) stop communicating competitively sensitive information to competitors; C) not retaliate against retailers that exercise discounting authority; and D) agree not to fix terms or prices with competitors for the provision of e-books.

The final judgment does not impose a business model on the e-book industry. However, for two years, Settling Defendants cannot prohibit retailers from discounting e-books.

There’s much more in this 66 page document from the Department of Justice. I hope that I have picked out the key points to help us understand what it means and how it will affect us. For more information you can view the decision at

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Author: Jim Devitt

Jim Devitt’s debut YA novel, The Card, hit #1 in three separate categories on the Kindle Bestseller list in early January and was a finalist in the Guys Can Read Indie Author Contest this past summer. Devitt currently lives in Miami, FL with his wife Melissa and their children. Learn more about Jim at his blog and his Amazon author page.

9 thoughts on “Department of Justice Decision Released”

  1. I didn't get through the whole thing. But my favorite part was when the DoJ told the publishers, agents, and Apple that US antitrust laws exist to foster competition, not restrict it. 😀

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