More Calcalist: Apple will not be able to sell its products earlier generations of U.S. Microsoft

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"Clause in the contract with Apple, which allows it to adjust the prices of books Hdgitliim lower prices of its competitors was a factor in our decision to go to work with a model agency also other bookstores, including Amazon" - testified CEO American division of Penguin Publishing, David Shanks, On the second day of a trial conducted by the U.S. digital books against Apple.
More Calcalist: Apple will not be able to sell its products earlier generations of U.S. Microsoft's new plan: make Apple, Google and Amazon Apple conspiracy books: The trial began today in the administration claimed that the company was up to, in cooperation with major publishing companies in the world, to raise the prices of digital books. center court is a model selling digital books from Apple, called "Model Agency". before primer this model stores primer selling digital books bought them costs at wholesale price and sell to consumers at a price determined by themselves. according primer to a model agency, bookstore mediates between consumer spending. expenditure determines the final price of the book, and the store gets a certain percentage of the sale.
"The fact that the clause in the contract appeared more or less forced us to act according to the agency primer model," said Shanks, publishing house headed, like other publishing defendants signed plea agreement. Shanks, the first of the publishers take the stand, he said he is concerned about the prices of books rates offered by Amazon in 2009 was responsible for 90% of sales of digital primer books Penguin.
As reported by Reuters, Shanks primer testified that Amazon pricing policy of new titles and bestsellers at $ 9.99 a delicate ecosystem threatened to undermine. "The digital books did cannibalize primer print editions, primer sold at an average price of $ 26," he said.
Shanks claimed on cross section ensures Penguin opposed to Apple prices the same or lower than those of its competitors (known in English Most Favord Nation Clause), for fear that you will lose money if Apple will compare its prices to those of Amazon and add that charging a commission. According to Shanks, he agreed to this section only after other expenses did so.
After that Barnes & Noble has adopted the agency model, began to Amazon Fingiowein act to transfer this model. No expense was the last of the five largest expenses faced Amazon, negotiations did not go smoothly. "They yelled, screamed and threatened. Meeting was very unpleasant," he testified shanks.
On the witness stand yesterday was also Kevin Saul, one of the key people from Apple in talks with the company conducted various content companies in music, television and of course books. "We wanted to create primer a level playing field so that equality for all major publishers would be treated the same as the small publishers," he said, according to a report by Cnet.
"Apple just wanted to launch the book store the world's best." By Saul, Apple was "indifferent" to transactions that were reached expenses with other retailers, and negotiations with them was "difficult and challenging" and all objections to Articles Apple insisted on them, including Section Most Favored Nation.
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