Apple, E-Books and the Amazon Juggernaut

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[Commentary] Although the government’s antitrust case has superficial appeal, the record suggests that Apple’s actions may have benefited rather than harmed the welfare of e-book customers. The district court failed to pay serious attention to two issues. First, although the point of a price-fixing conspiracy is generally to increase prices, there is compelling evidence that the shift from a wholesale to an agency model resulted in a decrease in the average prices of e-books. Second, it would be misguided to judge the competitive effects of Apple’s behavior solely based on e-book prices. Rigid per se rules to assess the legality of new arrangements in dynamic technology markets pose a serious risk of retarding innovation and harming the interest of consumers.

[Daniel Crane is an Associate Dean and Professor of Law at the University of Michigan Law School]


Apple, E-Books and the Amazon Juggernaut