Amazon and EU Reach Settlement Over E-Book Contracts
May 04 2017 - 7:04AM
Dow Jones News
By Natalia Drozdiak
BRUSSELS-- Amazon.com Inc. has reached an agreement with the
European Union's antitrust authorities over the EU's probe into its
electronic books contracts with publishers.
The European Commission said Thursday that it had accepted
commitments made by Amazon, securing closure for one of the
regulator's investigations into the e-commerce company.
The European Commission opened a formal probe into Amazon's
e-books business in 2015, citing concerns the tech company imposed
illegal terms on publishers that harm purchasers of electronic
books. Certain clauses in those contracts may have made it harder
for other e-book retailers to compete with Amazon, the EU said.
To allay those concerns, Amazon has committed that it won't
enforce--or include in new contracts--clauses that require
publishers to inform or offer Amazon similar terms as those offered
to rivals, the EU said. Amazon will also allow publishers to
terminate contracts that contain specific clauses.
"We are pleased to have reached an agreement with the European
Commission," said Amazon spokesman Conor Sweeney.
The commitments apply for five years to all e-books distributed
by Amazon in Europe. Amazon could be fined up to 10% of global
revenue if it goes back on its pledges.
Separately, the commission continues to investigate whether
Amazon's tax arrangements with Luxembourg gave the company an
illegal advantage over competitors.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
May 04, 2017 06:49 ET (10:49 GMT)
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