A comprehensive summary of the law behind the Department of Justice e-book price-fixing lawsuit against Apple, Penguin and Macmillan from Jane Litte. Litte is the blogger behind DearAuthor.com, a romance review blog. According to her Twitter profile, Litte is a lawyer, editor and reader of romance fiction.
In her blog post, learn about monopolies, anti-trust law and just how the DoJ’s case against Apple and the publishers might play out (Antitrust Primer for the Publishing Price Fixing Lawsuit):
This article is to lay out, in simplest terms, antitrust law as it pertains to the publishing price fixing lawsuit. It is not designed to address the shortcomings of the law or the need for reform but the status of the law. Additionally, my knowledge of the antitrust law is very shallow.
The purpose of the antitrust law is to promote competition with the underlying maxim that competition creates the best product at the lowest price for the benefit of the consumer. Some economists argue that the focus on consumer welfare in antitrust laws harms competition and business. For instance, increased prices redistributes wealth from the consumer to amongst the producers and that is economic neutral outcome but because antitrust laws have focused on what is best for the consumer, an economic neutral outcome that pushes more money from the consumers’ pockets to that of a producer is a disfavored result.
Read much more at DearAuthor.com.