Amazon Settles To Remove E-Books Clauses To Rid Of EU Antitrust Probing

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In a bid to end an EU antitrust probe, the U.S. online retailer Amazon has offered to change its contracts with publishers regarding e-books. The stance was also initiated to stave off possible fines according to the European Commission.


Amazon, (AMZN.O), is the largest e-book distributor in Europe. The Commission stated that Amazon offered to let go of some clauses in its contracts in order for publishers to not be forced to grant it terms as good as or adjacent to those of rivals.

The clauses in question were related to release dates, e-books features, business models, agency prices, promotions, e-books catalogs, wholesale prices and agency commissions. The Commission's investigation opened up in June 2015 in the company's e-books in English and German.

The major concern was that the parity clauses in question would toughen the competition for other e-book retailers even by developing brand new and novel services and products. Rivals, as well as customers, were granted with a month to supply feedback by the EU competition enforcer before a decision to accept or reject the proposal was made.

Amazon has recently launched a Kindle Storyteller Award and questions remain whether this investigation will hamper that. Similar settlements directly mean no fines nor infringement cases under the EU antitrust rules which could reach 10 percent of a company's global turnover.

Although the company disagreed with the preliminary assessment of the Commission, Amazon stated that it was satisfied with the agreement. It also added its fair share of opinion stating that e-books do not form a separate market as they already are in direct competition with other forms of media as well as print books.

If Amazon's offer is accepted it would apply in Europe for the next five years. More probing by the Commission is looking into the arrangement Luxembourg shared with Amazon to reduce tax bills which are part of a crackdown on such deals in the 28-country bloc.

Tags
European Commission, Amazon

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