San Francisco Partner Joseph J. Tabacco, Jr. was quoted recently by Bloomberg Businessweek in an article about whether Amazon.com’s actions to pressure publishers and movie studios to lower the prices they charge the online retailer constitute illegal anticompetitive behavior.
The August 12 article by Todd Shields and David McLaughlin explores the debate over Amazon’s hardball tactics against companies such as Hachette Book Group, Walt Disney Co., and Warner Bros.
Amazon’s behavior is “getting very close to the line” of the kind of monopolistic practices that have attracted U.S. Justice Department investigations and lawsuits, Mr. Tabacco told the reporters.
Amazon’s refusal to discount and allow preorders of Hachette books in order to force the publisher to negotiate profit-sharing and pricing terms prompted Hachette authors to publish open letter decrying the practice. Amazon commands 60% of U.S. e-book sales, a market dominance that amplifies concerns about the effects of its practices on authors and readers alike.
Mr. Tabacco also appeared on the PBS blog Mediatwits to discuss this topic. To watch the video podcast, please click here.