Amazon is facing a new lawsuit alleging that a deal between the company and five book publishers has created higher prices on e-books.
The lawsuit comes a day after Connecticut said it was investigating Amazon for potential anti-competitive behavior in its business selling digital books.
Who filed the lawsuit?
The lawsuit was filed by law firm Hagens Berman in a federal district court in New York.
It alleges that the publishers pay high commissions and other costs to Amazon, which in turn increases the retail price of e-books sold on the platform.
How it was affected?
According to a report in The Wall Street Journal, Amazon and the five largest U.S. publishers, collectively called the ‘Big Five’, agreed to price restraints that cause consumers to overpay for eBooks purchased from them through a retail platform other than Amazon.com.
It prevented rival retailers from selling any of these publishers e-books at a lower price than on Amazon.
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