Missouri consumers could collect a total of more than one million dollars in a national settlement over alleged e-book price-fixing by three major publishers.
The settlement was announced Thursday. Missouri consumers are expected to receive up to $1.1 million in total compensation. Kansans who purchased certain electronic books will share more than $628,000 in refunds.
Under the agreement, Hachette Book Group, Inc., HarperCollins Publishers LLC, and Simon & Schuster Inc., have agreed to pay more than $69 million to consumers to resolve the allegations.
“Our legal action sends a strong message that companies cannot get away with price-fixing,” Missouri Attorney General Chris Koster said. “These publishers’ behavior cost consumers millions of dollars, but today’s settlement begins to compensate those consumers.”
“We take anticompetitive action that harms Kansas consumers very seriously,” said Kansas Attorney General Derek Schmidt.
“Colluding to fix prices raises costs for customers, who here have paid millions of dollars more than they would have for popular e-book titles. Today’s settlement provides restitution for consumers harmed by the scheme. True competition is essential to the working of the free market.”
The proposed settlement must yet be approved by a district court in New York. Consumers eligible to receive compensation will receive notice after preliminary approval of the settlement. Those consumers can file claims, but most will not need to submit anything because they will receive automatic credits to their e-book accounts if they are customers of Amazon, Barnes & Noble, Apple or Kobo. After preliminary approval, consumers will also have the option to opt out of the settlement or opt for a check.
The settling publishers have also agreed to terminate existing retailer contracts so that retailers, such as Amazon and Barnes & Noble, can freely set e-book prices. The publishers also agreed not to enter into new contracts that constrain retailers’ ability to discount e-books for two years.
In April, Koster and 15 other attorneys general filed a lawsuit alleging that the publishers conspired with each other and with Apple, Inc. to artificially raise prices by imposing a distribution model in which the publishers set the prices for bestsellers at $12.99 and $14.99. That lawsuit against Apple and the non-settling publishers, Penguin Group, Inc. and Holtzbrinck Publishers LLC d/b/a Macmillan, remains pending in the Southern District of New York. Trial is set for early June 2013.