"This a big win for Kindle owners and we look forward to being allowed to lower prices on more Kindle books," an Amazon spokesman said to CNN.
One-fifth of American adults read an e-book in the past year, according to a recent study by the Pew Research Center’s Internet and American Life Project. This billion-dollar market is even expected to triple by 2015, The Washington Post reports.
The Department of Justice held the lawsuit on Wednesday and found that Apple conspired with publishers to increase e-book prices back in 2010 when the iPad was released.
Back in 2010, Amazon originally forced the publishers to sell their e-books at $9.99, CNN reports. However, the publications attempted to force Amazon’s hand by offering their books to other retailers at $12.99. Amazon eventually caved in and the publishers were then able to set their own prices, CNN reports.
"This action drove up e-book prices virtually overnight," said Sharis Pozen, head of the DOJ's antitrust division, at a news conference on Wednesday to CNN. "Let me be clear: When companies enter agreements that prevent price competition, that is illegal."
“It is also hard to settle a lawsuit when you know you have done no wrong,” Macmillan chief executive John Sargent said in a statement to The Washington Post.
Many are concerned that this lawsuit will allow Amazon to become too dominant and gain a monopoly. Other concerns are that the ever-increasing gap between e-books and physical books will erase the traditional bookstore market, The New York Times reports.
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