The document summarizes the DOJ's case against Apple regarding ebook pricing. It notes that Amazon originally used a wholesale pricing model for ebooks, which kept prices low, while publishers wanted higher prices. Apple then offered publishers an agency model, which essentially used resale price maintenance to set prices. Publishers conspired to switch to the agency model across all retailers, including Amazon, which led to increased ebook prices overall. The case was about the publishers conspiring to switch pricing models in a way that increased prices, not about resale price maintenance itself.

1. ebooks and RPM
Tor Winston
November 29, 2021
US Department of Justice, Antitrust Division
View expressed here are my personal views and do
not necessarily reflect those of the United States Department of Justice

2. The DOJ’s Apple ebooks case
• Amazon – had wholesale model and sold ebooks at low retail prices
• Publishers objected to Amazon’s low ebook retail prices
• Apple offered Agency Model (essentially RPM)
• Apple MFNs effectively required each publisher to switch entirely to Agency
Model (including w/ Amazon)
• Publishers conspired to switch to the Agency Model (did not want to go it
alone)
• ebook prices increased
• Case was not about RPM, per se.

3. Source: https://www.justice.gov/sites/default/files/atr/legacy/2014/01/10/px-0842.pdf

4. A few general observations to consider when
evaluating RPM
• Consumer preferences over how content is consumed may be as
important as which content is consumed.
• Technological change and innovation can disrupt how content is
consumed and the cost structure of content distribution.