Two pieces of breaking news tonight:
Hachette joins Macmillan
David Young, the CEO of Hachette Book Group, announced that Hachette is adopting the agency model for ebook pricing. Here’s the GalleyCat article, which includes the text of Young’s letter.
For those keeping score, there are six major U.S. publishers: Macmillan, Hachette, HarperCollins, Penguin, Simon & Schuster, and Random House. Five of the six (all except Random House) made a deal with Apple to sell their ebooks on the iPad using the agency model. So now that Macmillan and Hachette have publicly committed to adopting the agency model for all of their ebooks (and with HarperCollins likely to as well, based on statements Rupert Murdoch made yesterday), it’s probably only a matter of time before the rest join in. But when will Amazon stop boycotting Macmillan books?
The Justice Department doesn’t like the amended Google Book Settlement, says “class certification, copyright and antitrust issues remain”
The Department of Justice submitted its views to the court on the amended Google Book Settlement. (The fairness hearing is on February 18th.)
The United States has filed a new Statement of Interest. The tone is balanced, but the conclusion is clear: the Department of Justice thinks the settlement is beyond the court’s authority and still problematic on antitrust grounds. It’s a careful, detailed brief, that raises fundamental objections to the settlement. These issues will not be resolved with quick patches, even if the parties were in the mood to revise and resubmit a second time.
The battle has been truly joined.
Here’s an excerpt from the press release issued by the Department of Justice:
The Department of Justice today advised the U.S. District Court for the Southern District of New York that despite the substantial progress reflected in the proposed amended settlement agreement in The Authors Guild Inc. et al. v. Google Inc., class certification, copyright and antitrust issues remain. The department also said that the United States remains committed to working with the parties on issues concerning the scope and content of the settlement…
In its statement of interest filed with the court today, the department stated, “Although the United States believes the parties have approached this effort in good faith and the amended settlement agreement is more circumscribed in its sweep than the original proposed settlement, the amended settlement agreement suffers from the same core problem as the original agreement: it is an attempt to use the class action mechanism to implement forward-looking business arrangements that go far beyond the dispute before the court in this litigation.”
Here’s the New York Times article about it, noting: “While the Justice Department did not explicitly urge the court to reject the deal, as it had the previous version, its opposition on copyright, class action and antitrust grounds represented a further setback for Google and the other parties to the deal.”
For more on the Google Book Settlement, see my earlier posts.