Hachette and Amazon made a deal
By Alberto Mingardi
I have previously commented on the quarrel between Amazon and Hachette, a cause celebre that brought Paul Krugman to argue against Amazon’s “market power.”
Now the contract dispute has, as it happens with contract disputes, come to an end.
The Wall Street Journal reports this comment from analyst James McQuivey:
It’s a victory for Hachette in that they get to set the consumer prices of their e-books, while Amazon wins in that it has given Hachette an incentive to keep prices lower,” said James McQuivey, an analyst with Forrester Research. “This deal should have been done a lot earlier. Emotions took over, and they both began talking like they were protecting the free world.
Competition police weren’t needed, after all.