Amazon’s Monopoly

The day after Apple introduced the iPad, Macmillan went to Amazon to negotiate the pricing of their products. Amazon was selling their ebooks at $9.99, when their print versions normally go for between $5.99 and $14.99.  Amazon was also taking a huge cut of commission, but Macmillan basically wanted to get the same deal they were getting with Apple.  So, as a result, Amazon stopped selling Macmillan books.  However, on Sunday, Amazon said it would start reselling Macmillan books because they have a “monopoly over their own titles.” [1]

Of course Macmillan has a monopoly over those things which it owns (i.e., as the copyright owner).  Nobody else owns them.  I buy a LOT of books and would love for cheaper prices.  And if you check prices of a given book in several bookstores, Amazon almost always comes out to be the cheapest at the end.  This is because Amazon’s business tactics seem to be to strongarm publishers into giving them more competitive pricing.  I remember talking to a friend at a former school I was at, and she was saying how the institution’s publishing arm was being forced to underprice things or Amazon would not buy from them.  But of course, that small academic publishing house has a monopoly over its own titles, too.

Sometimes, I get so frustrated about companies like Amazon, Walmart, etc.  I like walking down to my local hardware store or butcher or bookstore to get what I need.  Whenever possible, we should always be willing to pay a little bit more to support the independent shops.

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