In today’s New York Times, media columnist David Carr examines the suit that the Justice Department entered last week. It charges Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster of colluding with Apple, against Amazon, to fix prices on eBooks. All but Macmillan and Penguin have agreed to settle (the text of the filing is here).
According to Carr, the action gives Amazon a major advantage; “Amazon has the Justice Department as an ally to rebuild its monopoly and wipe out other players. ”
The press has been in agreement with Carr. The WSJ offered a similar opinion last week, remarking on Justice’s “hyperventilating account of Apple’s negotiations with the publishers” and that “The book industry is defending the very survivability of a book industry whose products are anything but uniform.”
Amazon’s home town paper, The Seattle Times, reports on speculation that Amazon is behind the law suit.