I stumbled across this article and thought it was interesting because allegations are being made against Apple by the EU as to whether their so called “agency agreements” can be considered monopolistic. In 2010, Apple started encouraging agency agreements which allow publishers to set the price at which online bookshops sell e-books to consumers. Before then, publishers sold e-books at wholesale, and the retailers were able to set the price at which they wished to resell the e-books.
The investigation also alleges that Amazon was forced to abandon its discount pricing model and adopt this agency model as well in order for its’ Kindle to better compete with Apple’s iPad. Many believe that Apple purposely did this because they feared the competition with Amazon and wished to neutralize the e-book market by imposing the agency agreement on publishers. What do you think? Is this an issue that can be considered a violation of antitrust legislation?