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The most favored nation clauses and the subsequent agency deals that were pushed on competing ebook sellers by the publishers make it clear it wasn't just Apple
by Kylekramer 13y ago
The most favored nation clauses and the subsequent agency deals that were pushed on competing ebook sellers by the publishers make it clear it wasn't just Apple and partners working in their own venue to raise prices. It was a tactic to use the iPad's launch as a moment of uncertainty that would allow the publishers to raise prices across the entire industry.
Edit: To address your added analogy, I agree. Your proposed example does not seem terrible. It is also not at all close to what happened with Apple and the book publishers. It wasn't one company increasing prices successfully at one store and then shopping the new deal to other stores. It was nearly the entire industry swiftly pushing new deals designed to increase prices and break Amazon's position of power in the industry. The increased prices weren't due to the success of the prices in the iBookstore, but the legally binding clauses and assurances from Apple and the other publishers that they would present a united front. If Hasbro, Mattel, and every other major toy manufacturer raised prices to K-Mart at the same time due to suggestions from Walmart, I would object on intellectual and emotional levels. And I am sure the DoJ would too.