Penguin reaches pact with EU to end e-book price-fixing probe
Penguin has vowed to change its pricing strategy for digital books, including terminating an e-book pricing pact with Apple, to resolve an antitrust probe by the European Union.
As part of the deal, Penguin has agreed to terminate existing agency agreements -- those pacts that allow a publisher, not a retailer, to set prices -- and will refrain from adopting "most favored nation" pricing clauses for five years. Those had prevented retailers such as Amazon from undercutting Apple's e-book prices.
If Penguin does enter into new agency agreements, retailers would be free to set the retail price … Read more