OFT to probe ebook prices

by Simon Aughton on February 2, 2011

The Office of Fair Trading has begun an investigation into ebook prices, after it received “a significant number of complaints”.

The regulator said it is looking at whether pricing arrangements between book publishers and digital retailers breach UK competition laws.

“The investigation is at an early stage and it should not be assumed that the parties involved have breached competition law,” the OFT said in a statement.

It didn’t name any of the companies under investigation, though they are certain to include Apple and Amazon, the two leading ebook retailers.

Amazon has criticised publishers in the past for high ebook prices, which under the “agency” model, are set not by the retailer but by the publisher.

“In the UK, we will continue to fight against higher prices for e-books, and have been urging publishers considering agency not to needlessly impose prices increases on consumers,” Amazon said.

US regulators are also examining ebook prices.

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