Amazon offers to scrap e-book clauses to settle EU antitrust probe
U.S.
online retailer Amazon (AMZN.O) has offered to alter its e-book
contracts with publishers in a bid to end an EU antitrust probe and stave off a
possible fine, the European Commission said on Tuesday.
Amazon, the biggest e-book distributor in Europe,
proposed to drop some clauses in its contracts so publishers will not be forced
to give it terms as good as those for rivals, the Commission said.
Such clauses relate to business models, release dates,
catalogs of e-books, features of e-books, promotions, agency prices, agency
commissions and wholesale prices.
The
Commission opened an investigation into the company's e-books in English and
German in June 2015, concerned that such parity clauses make it harder for
other e-book retailers to compete with Amazon by developing new and innovative
products and services.
The EU competition enforcer gave rivals and customers
a month to provide feedback before it decides whether to accept the proposal.
Under EU antitrust rules, such settlements mean no finding of infringement nor
fines which could reach 10 percent of a company's global turnover.
Amazon said it was pleased with the agreement but
disagreed with the Commission's preliminary assessment, saying that e-books are
not a separate market as they compete directly with print books and other forms
of media.
Amazon's offer, if accepted, would apply in Europe for
five years.
Regards
Pralhad
Jadhav
Senior
Manager @ Library
Khaitan & Co
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