12/19/2023 0 Comments Amazon e book store![]() The authors conclude that there is one effective route to resolve the current imbalances to the benefit of right holders and consumers while strengthening competition. It then proposes a solution by targeting Amazon’s dominant position in the marketplace and the pivotal role the Kindle environment has in this. It will show that the dominant role of Amazon has changed the industry dynamics and needs to be addressed by critically evaluating the role played by competition rules and the use of digital rights management (DRM) software. It will pay particular attention to the effect this had on publishers and the consumer. This article will first outline how digital technology, focusing on e-books, has changed the distribution arrangements within the publishing industry. Footnote 6 This article proposes a solution to the problem through competition law, prioritising consumer choice to enable consumers to read new innovative e-books, which are not yet available, on their electronic reading devices in the future. The solutions adopted under copyright to limit online piracy, especially the strong protection and widespread use of highly restrictive digital rights management software, create major obstacles for consumers to switch between providers while limiting consumer behaviour beyond what copyright envisions. ![]() The underlying dynamic is driven by copyright law, the very same law that used to underpin publisher control in the first place. Publishers are still facing the same threat: the overwhelming market power of Amazon. Footnote 5 The key condition, the ban of most-favoured-nation clauses is expiring in 2022, but the underlying issues have not been resolved. ![]() Footnote 4 After examining the anticompetitive effects of the MFNs, the Commission considered that a five-year ban on including MFNs in new agreements or enforcing such clauses in existing agreements would be sufficient to boost competition in the e-book market. Footnote 3 While MFNs can foster innovation as they allowed Amazon to recover its cost, they also had an anticompetitive effect by harming e-book distributors and creating a barrier to entry for competing e-book providers. Footnote 2 Amazon used various types of MFNs to control, for example, the availability, specific features, format and prices of e-books. One of the main reasons for opening the formal investigations in 2015 was that Amazon used most-favoured-nation (MFN) clauses also known as parity clauses in its e-book distribution agreements with e-book suppliers. Footnote 1 It was the culmination of a long-running dispute between Amazon and the largest book publishers about the latter’s loss of pricing control. In 2017, the European Commission and Amazon agreed on conditions imposed on the largest trade book publishers to ensure competition in the e-book market. Furthermore, consumers would benefit from broader flexibility when using their Kindle, allowing them to store and read e-books from the provider of their choice. It safeguards copyright aims while alleviating the contractual constraints imposed by Amazon. The proposed approach is beneficial for publishers as well as consumers. ![]() This article advocates for enforcing the Kindle’s interoperability with the e-book formats of other e-book providers. The European Commission attempted to increase competition in the e-book market by banning most-favourite-nation clauses, but this has seemingly failed. This not only affects consumer choice but also reinforces Amazon’s market power due to the significant network effects. ![]() On the other hand, Kindle users are locked-in consumers, limited to Amazon’s e-book offering. This will affect the authors’ remuneration and attribution. Publishers have less control over setting the price to have access to Amazon’s customer base. The introduction of the “Kindle” further cemented Amazon’s dominant position and business model in the market, having negative implications for authors, publishers and consumers. The presence of Amazon is ubiquitous, especially in the online bookstore and e-book market. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |