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 a class action against Amazon under Sherman Act for violating antitrust laws
  • Amazon filed a motion to dismiss.

 

Arguments

  • Amazon is forcing all print on demand (POD) publishers that want to sell their books on Amazon to use a specific printing service that Amazon acquired
  • The printing service is more expensive than competitors and if publishers do not use this printer the only way to continue selling on Amazon is to sign up for Amazon Advantage which has 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 as “an untenable choice”: either continue to lose business due to improper restrictions on the Direct Amazon Sales Channel or be forced to sign with the expensive printer.

 

Summary and Conclusion

  • Court denied Amazon’s motion to dismiss and found a plausible claim for Plaintiff’s case.
On April 7, 2016   /   Law Library