Booklocker.Com, Inc., v. Amazon.Com, Inc.
Booklocker.com, Inc., v. Amazon.com, Inc., 650 F.Supp.2d 89, United States District Court, D. Maine, 2009
Issue
- Has Amazon violated antitrust laws by tying its book-selling services to the use of a specific printing service?
Case Details
- Plaintiff brought class action against Amazon under Sherman Act for violating antitrust laws
- Amazon filed motion to dismiss.
Arguments
- Amazon is forcing all print on demand (POD) publishers that want to sell their books directly on Amazon to use a specific printing service that Amazon acquired
- The printing service required is more expensive than competitors and cost-prohibitive, and if publishers do not use this printer the only way to continue selling directly on Amazon is to sign up for Amazon Advantage which requires a cost-prohibitive expense of first providing Amazon with 5 copies of each book you publish, and Amazon then keeps 55% of each book sale.
- Authors have left Plaintiff’s publishing company because they are no longer able to sell books directly on Amazon
- The only alternative is to sell on Amazon Marketplace rather than directly through Amazon
- Sales are much lower on Amazon Marketplace because customers value the fast and free shipping policies Amazon offers, on Marketplace vendors are required to charge a set shipping price which is often higher than the actual cost of shipping.
- Several publishers have been coerced to sign with Amazon’s printer as a result.
- Amazon’s conduct presents POD publishers “an untenable choice”: either continue to lose business due to improper restriction on the Direct Amazon Sales Channel or be forced into signing with the expensive printer.
Summary and Conclusion
- Court denied Amazon’s motion to dismiss and found plausible claim for Plaintiff’s case.
