Feeds

Apple probed by EC antitrust arm over ebooks market

Did publishers and Cupertino stifle competition in EU?

High performance access to file storage

Brussels opened a formal investigation into the sales of ebooks in Europe this morning to determine whether five publishers, with the help of Apple, had breached competition rules within the EU.

In a statement, the European Commission listed News Corp-owned, US-based Harper Collins; France-based Hachette Livre, which is owned by Lagardère Publishing; Pearson Group's Penguin in the UK; CBS-owned, US-based Simon & Schuster; and Germany-based Verlagsgruppe Georg von Holzbrinck, which owns, inter alia, Macmillan.

The opening of proceedings means that the Commission will treat the case as a matter of priority. It does not prejudge the outcome of the investigation.

The Commission will in particular investigate whether these publishing groups and Apple have engaged in illegal agreements or practices that would have the object or the effect of restricting competition in the EU or in the EEA [European Economic Area].

The Commission is also examining the character and terms of the agency agreements entered into by the above named five publishers and retailers for the sale of e-books. The Commission has concerns, that these practices may breach EU antitrust rules that prohibit cartels and restrictive business practices (Article 101 of the Treaty on the Functioning of the European Union – TFEU).

Brussels said it was unable to give a deadline for when the investigation would be completed due to a number of factors, including the complexity of each case.

In March this year, the Commission surprised several premises of various companies that do business in the ebook publishing sector, by arriving unannounced to carry out inspections.

The EC said that the UK's Office of Fair Trading (OFT) had been investigating the matter in parallel with Brussels to probe whether business practices for the sale of ebooks breached competition rules.

In a separate statement, the OFT said:

The OFT has decided to close its investigation into whether arrangements that certain publishers have put in place with some retailers for the sale of e-books may breach competition rules.

This decision has been taken on the grounds of the OFT's administrative priorities, in particular because the OFT believes, following discussions with the European Commission, that the European Commission is currently well placed to arrive at a comprehensive resolution of this matter and will do so as a matter of priority.

The OFT will continue to cooperate closely with the European Commission on this matter to help secure the best outcome for UK consumers.

The OFT may reconsider its decision, in consultation with the European Commission, in the future if it has reasonable grounds to suspect that there is an infringement of competition law, which may have an impact on UK consumers.

The OFT has not reached any view as to whether or not the parties involved have infringed competition law.

Apple and the publishers now under investigation by the antitrust wing of Brussels have been told that proceedings are underway, the EC said. ®

High performance access to file storage

More from The Register

next story
Android engineer: We DIDN'T copy Apple OR follow Samsung's orders
Veep testifies for Samsung during Apple patent trial
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Big Content goes after Kim Dotcom
Six studios sling sueballs at dead download destination
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Alphadex fires back at British Gas with overcharging allegation
Brit colo outfit says it paid for 347KVA, has been charged for 1940KVA
Jack the RIPA: Blighty cops ignore law, retain innocents' comms data
Prime minister: Nothing to see here, go about your business
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.