The FTC is warning Apple and other Publishers of their need to respond to an industry-wide pricing ‘agency model,’ in which the publishers control the price of the books, providing a 30% cut to the reseller of the title. Apple was the one who pushed for this pricing structure and is even recounted within Steve Job’s biography according to a Wall Street Journal report.
“The five publishers facing a potential suit are CBS Corp.’s Simon & Schuster Inc.; Lagardere SCA’s Hachette Book Group; Pearson PLC’s Penguin Group (USA); Macmillan, a unit of Verlagsgruppe Georg von Holtzbrinck GmbH; and HarperCollins Publishers Inc., a unit of News Corp., which also owns The Wall Street Journal.
Spokespeople for the five publishers and the Justice Department declined to comment. Apple, which introduced a new version of its iPad tablet Wednesday, declined to comment.”