Jerry Brito on Amazon and Antitrust

Some
people wonder why libertarians are skeptical of antitrust. For a
hint, you have to look no further than the recent battle between
book-selling giant Amazon and the publisher Hachette.

Amazon and Hachette are engaged in a pricing dispute. Although
the details are unclear, it’s been reported that Amazon wants
better terms on ebooks as it renegotiates its contract with
Hachette. Hachette is holding the line, and Amazon has exercised
its “nuclear option” by pulling Hachette’s print books off
its virtual shelves. As a result, the company faces accusation that
it acts like a monopoly and calls for antitrust action.

So it is interesting to note, points out Jerry Brito, that the
dispute is happening now because Hachette agreed to renegotiate its
contract with Amazon as part of an antitrust settlement with the
Department of Justice. That’s right. Hachette and four other big
publishers were sued along with Apple in 2012 for antitrust
violations.

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