On E-book collusion:
Once Apple made it known it would accept agency pricing (but not selling books at a higher price than other retail competitors), the publishing companies didn’t have to act in concert, although one of them had to be willing to bell the very large cat called Amazon by moving to the agency model.
I’ve long had a personal hypothesis — not based on any inside information, but simply my own read on the matter, I should be clear — that the reason it was Macmillan that challenged Amazon on agency pricing was that Macmillan is a privately held company, and thus immune from being punished short-term in the stock market for the action. Once it got Amazon to accept agency pricing, the other publishers logically switched over as well. This doesn’t need active collusion; it does need people paying attention to how the business dominoes could potentially fall.
Again, maybe they all did actively collude, in which case, whoops, guys. Stop being idiots. But if they did not, I suppose the question is: At what point does everyone knowing everyone else’s business, having a good idea how everyone else will act, and then acting on that knowledge, begin to look like collusion (or to the Justice Department’s point, activelybecome collusion)? My answer: Hell if I know, I’m not a lawyer. I do know most of these publishers have a lot of lawyers, however (as does Apple), and I would imagine they have some opinions on this.
John Scalzi is an author, blogger, and apparently a pretty good economist too. Read the whole thing.