It has been said by the Connecticut Attorney General, Richard Blumenthal, on Monday that he was probing deals struck by Apple and Amazon. com to provide low prices on e-books. According to him, the contracts might not allow competitors from providing alluring pricing.
Mr. Blumenthal said that when Apple and Amazon signed deals with large publishers, they ensured that rival booksellers would not face lower price. Simon & Schuster, Hachette, HarperCollins, Penguin and Macmillan were among those large publishers.
Letters have been sent to Apple and Amazon by Mr. Blumenthal in which he asked them to meet the official to talk about the deals.
“The e-book market is set to explode — with analysts predicting that e-book readers will be among the holiday season’s biggest electronics gifts — warranting prompt review of the potential anti consumer impacts”, Mr. Blumenthal said in his statement.
Apple and Amazon are ferociously challenging the e-book market. Both Apple and Amazon were not available to give the statements. Penguin’s representative could not reach immediately, whereas HarperCollins Simon & Schuster refused to give comments.
For devices like the Apple iPad and the Kindle from Amazon, digital content is very essential. Prices of e-book are very less as compare to hardcover prices. Apple and Amazon provide $9.99 to many best sellers.