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ARTICLE · 31 JANUARY 2017

Ebooks: 4 Settlements And 1 Application

Affleck Greene McMurtry LLP
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Apple and ebook publishers Hachette, Macmillan, and Simon & Shuster have agreed to change how they sell ebooks to settle allegations that they entered into an anti-competitive agreement that reduced price competition by ebook retailers.

CanadaAntitrust/Competition Law
W. Michael G. Osborne
W. Michael G. Osborne
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Apple and ebook publishers Hachette, Macmillan, and Simon & Shuster have agreed to change how they sell ebooks to settle allegations that they entered into an anti-competitive agreement that reduced price competition by ebook retailers. The Commissioner of Competition commenced an application in the Competition Tribunal against a fourth publisher, HarperCollins, that refused to settle. Both the application and the settlements allege that Apple and the ebook publishers entered into an anti-competitive arrangement to prevent retailers from reducing ebook prices.

The settlements prohibit the publishers from restricting an ebook retailer's ability to reduce retail ebook prices. They also forbid the use of "most favoured nation" (MFN) clauses by ebook publishers. The settlements take the form of competition agreements filed with the Competition Tribunal.

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