Texas looking into e-book pricing

Wall Street Journal
Jeffrey Trachtenberg and Yukari Iwatani Kane report that the Texas Attorney General has made inquiries with two major publishers as part of a preliminary investigation into e-book pricing.

“It isn’t yet clear what areas of inquiry Texas is pursuing. One possible focus is Apple’s e-book pricing and its impact on consumers. Apple, in seeking to attract content for the iPad, opted for an agency pricing model in which publishers set their own retail prices and receive 70 percent of the price while sellers receive the remaining 30 percent.”

One result of this change in pricing models was an increase in prices on Amazon’s Kindle e-reader, as that bookseller was also forced to switch to the agency model.

>Editorial: Apple and the Antitrust Regulators (NYTimes.com)

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