OFT launches ebook pricing investigation
The Office for fair Trading has begun an investigation into alleged price fixing between “certain publishers and retailers” in the sale of ebooks.
The regulator embarked upon the investigation following receipt of a “significant number of complaints” around agency pricing, a mechanism which allows publishers to set the retail prices for downloaded books rather than the retailer.
Though the complainants remain unidentified Amazon are well known opponents of the practice, with the company previously saying that the agency model "was a damaging approach for readers, authors, booksellers and publishers alike."
Several publishers, including Hachette, HarperCollins and Penguin have already introduced agency price fixing with Simon & Scuster set to make the switch by the end of the year.
An OFT spokesperson said: “The investigation is at an early stage and it should not be assumed that the parties involved have breached competition law.”