Amazon.com Inc. settled its dispute with publisher Hachette Book
Group more than nine months ago, but a group of hundreds of authors
is still battling the Web retailer.
The collective, known as Authors United, on Thursday filed a
letter with the U.S. Department of Justice seeking a probe of
Amazon for having created a "monopoly" with "unprecedented power
over America's market for books." Authors United had been working
on its formal appeal to the agency since at least September.
Led by author Douglas Preston, the group said Amazon has
repeatedly blocked or limited the sale of thousands of books on its
site, sold some books below cost to gain market share and attempted
to compel customers to buy books from its own imprints rather than
companies.
"We respectfully request that the Antitrust Division investigate
Amazon's power over the book market, and the ways in which that
corporation exercises its power," Authors United said in its
letter, reviewed by The Wall Street Journal.
An Amazon spokeswoman declined to comment. A Justice Department
spokesman didn't immediately respond to a request for comment.
Authors United formed last year in response to Amazon's bruising
negotiation with Hachette, a unit of Lagardere SCA, primarily over
e-book pricing. During the seven-month battle, Amazon removed
preorder buttons for some Hachette titles and delayed shipment for
others, moves that were criticized by some authors.
The two sides agreed to allow Hachette to set the consumer
prices of its titles. Amazon had sought to get Hachette to set
e-book prices at $9.99 each, which the retailer said was ideal to
spur the most sales, based on its data. For its part, Hachette said
a single price for all of its titles didn't take into account
editing, marketing and other costs.
After reaching its deal with Hachette in November, Amazon also
has come to terms with other publishers.
Authors United gathered 575 signatures for the letter, which is
addressed to Assistant Attorney William Baer, who oversees the
Justice Department's antitrust division. The list includes
prominent authors such as Scott Turow, Nelson DeMille and Nora
Roberts. Amid the height of the backlash against Amazon last year,
Authors United collected about 1,000 signatures for a letter
directed at Amazon and published as a full-page ad in the New York
Times.
Ursula K. Le Guin, the author of "The Left Hand of Darkness" and
other bestsellers, said she endorsed the letter because she feared
Amazon amassing too much influence over publishers and authors. "It
does not seem wise to let one entity control such a big part of our
emotional and cultural core," she said in an interview.
Indeed, Amazon is the nation's largest single bookseller,
controlling about 40% of the new book market and nearly two-thirds
of the e-book market, according to some estimates. That also makes
it a crucial avenue for publishers to sell older titles that would
otherwise not get shelf space as the ranks of the largest
bookstores has diminished.
Amazon, too, has many defenders who say, for instance, its
self-publishing arm allows otherwise unknown authors to get wide
exposure.
Other writers who signed the Authors United letter, such as
Daniel Menaker, author of the memoir "My Mistake," said they feared
Amazon had too much influence over book pricing, which could damage
publishers' profits in the long run. Mr. Menaker has also written
an Amazon Kindle title.
Franklin Foer, former editor of The New Republic magazine, said
in an interview that Amazon deserved more scrutiny from regulators.
"Amazon could use its ever-greater power to extract more profits
from publishers, which then limits authors' profits," he said.
This isn't the first time a literary group has asked the Justice
Department to look into Amazon's business practices.
The Authors Guild, which represents about 9,000 authors, met
with Justice Department officials last summer, raised antitrust
concerns regarding the online retailer, and asked for an
investigation. Jan Constantine, general counsel, said the Guild is
unaware whether the DOJ launched an investigation.
In mid-July, the Authors Guild posted on its website a preamble
to Mr. Preston's letter signed by Roxana Robinson, its president.
Ms. Robinson wrote that the Guild was concerned by what it
characterized as the "dominance that Amazon—through its
artificially depressed book prices—wields over the book ecosystem,
and the potential repercussions on the free flow of information and
free expression."
Ms. Robinson wrote that the Authors Guild supports the request
by Authors United.
Write to Greg Bensinger at greg.bensinger@wsj.com and Jeffrey A.
Trachtenberg at jeffrey.trachtenberg@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 20, 2015 13:25 ET (17:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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