No images? Click here Welcome to The Corner. In this issue, we discuss how Amazon is attempting to replace public libraries by refusing to sell them its eBooks and the nomination of Lina Khan to the Federal Trade Commission. Amazon withholds its eBooks to undermine libraries. Librarians, advocacy groups and states won’t let it. In 2018, Forbes contributor Panos Mourdoukoutas, chair of the economics department at LIU Post, penned an op-ed advocating for Amazon to replace local libraries in order to save taxpayers’ money while “[providing] something better than a local library.” Mourdoukoutas’ proposal received such immediate backlash from library workers and supporters that Forbes took the story down an hour after it was published. Three years later, Amazon appears to be doing just what Mourdoukoutas proposed. As reported by The Washington Post on March 10, Amazon Publishing won’t sell its eBooks to public libraries. When a library patron visits their Libby app by OverDrive, a distributor of digital content from local libraries, they won’t see any digital content published by Amazon. This is the corporation’s latest tactic in Amazon’s overarching plan to undermine public libraries and to turn library users into paying customers, library supporters say. Amazon already gathers a great variety of data on most of the people who borrow e-books at public libraries — either through its Kindle readers or through the Kindle apps loaded on Apple and Android devices. And the corporation is largely free to use this information both to lure these readers into buying more books and other products from Amazon, and to decide what e-book authors to publish directly. Amazon’s move comes at a time when e-book borrowing from libraries is rising fast. According to data from OverDrive, e-book borrowing increased by more than 40 percent in 2020 as library patrons relied more on digital collections during the pandemic. Experts estimate that Amazon Publishing touts more than 6 million eBooks, including titles that are self-published on the platform, while the tech titan’s share of the U.S. e-book market sits at about 83 percent. Librarians are voicing their disappointment, pointing out how Amazon’s restricted access to its collection of digital titles disrupts what libraries can provide to their communities. Library patrons aren’t only missing out on unique self-published titles from niche authors, but are also barred from more well-known books like Mindy Kaling’s “Nothing Like I Imagined” and Trevor Noah’s “Born a Crime.” Kathy Lo, a librarian in Southern California, told Open Markets, “The reality is all public libraries would love to get as many titles as possible available on their e-media platforms… The fact that Amazon does not generally sell their [digital]products to public libraries is not something we want to see.” Without access to such digital content, Amazon shepherds library users to rent or buy the eBooks instead. In 2018, nearly 90 percent of eBooks were sold through the platform. While steering customers away from free libraries, Amazon also appears to be increasing the prices it charges for its eBooks. On Jan. 14, the law firm Hagens Berman filed a class-action lawsuit in a New York federal district court against Amazon. The suit accuses the tech company of eBook price fixing through its dealings with the Big Five — Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster — which the plaintiffs say increased the retail prices of eBooks on Amazon. The lawsuit resembles a 2012 case in which the Department of Justice filed an antitrust complaint against Apple and a number of publishers, including HarperCollins and Simon & Schuster. The complaint alleged that Apple and the publishers colluded to raise the prices of digital books and undermine Amazon’s dominance. There is a growing effort to protect public libraries — and readers — from Amazon’s power. States including New York, Maryland and Rhode Island have introduced bills requiring publishers to offer libraries licenses for digital titles under“reasonable terms.” Advocacy groups, such as Fight for the Future, also are condemning the company’s eBook business tactics, calling them violations of antitrust law. In a statement to Open Markets, FFF’s campaigns and communications director Lia Holland said, “By creating exclusive silos like Audible and Kindle to direct readers into digital ecosystems, [Amazon] is gaining valuable and exclusive insight into the publishing industry that it can use to further cement its monopoly.” Open Markets Applauds President Biden’s Choice to Nominate Lina Khan for Commissioner of the Federal Trade Commission
This week President Joe Biden nominated our former colleague, close ally, and dear friend Lina Khan to a seat on the Federal Trade Commission (FTC). The move was widely read as signaling a tougher stand by the Biden administration on antitrust enforcement against Big Tech. Khan first joined Open Markets in the summer of 2011 and worked with us as a reporter and researcher for three years. Khan then spent three years as a senior fellow with Open Markets, before returning as our first legal director from 2017 to 2018. Khan has also worked as the counsel on the House antitrust subcommittee, where she led the investigation of competition in digital markets and played a key role in the report filed in October of last year. Khan has also served as a legal advisor to former FTC commissioner Rohit Chopra. (NPR) In a statement about Khan’s nomination, Open Markets Executive Director Barry Lynn said: “All of us at Open Markets are extremely proud of Lina’s work and her dedication to the well-being of all the American people. President Biden has made many excellent decisions in staffing his new administration. His choice of Lina Khan to serve on the FTC is one of his very best.” 🔊 ANTI-MONOPOLY RISING:
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BARRY LYNN’S NEW BOOK
Liberty From All Masters The New American Autocracy vs. The Will of the People St. Martin’s Press has published Open Markets Executive Director Barry Lynn’s new book, Liberty from All Masters. Liberty is Lynn’s first book since 2010’s Cornered. In his new work, Lynn warns of the threat to liberty and democracy posed by Google, Amazon, and Facebook, because of their ability to manipulate the flows of information and business in America. Barry then details how Americans over the course of two centuries built a “System of Liberty,” and shows how we Americans can put this system to work again today. Lynn also offers a hopeful vision for how we can use anti-monopoly law to rebuild our society and our democracy from the ground up. Liberty from All Masters has already made waves for its empowering call to restore democracy by resurrecting forgotten tools and institutions. “Very few thinkers in recent years have done more to shift debate in Washington than Barry Lynn. In Liberty from All Masters, he proves himself as a lyrical theorist and a bold interpreter of history. This book is an elegant summoning of a forgotten tradition that can help the nation usher in a new freedom,” says Franklin Foer, author of World Without Mind and national correspondent for The Atlantic. You can order your copy of Lynn’s book here.
SALLY HUBBARD’S NEW BOOK
MONOPOLIES SUCK 7 Ways Big Corporations Rule Your Life and How to Take Back Control Simon & Schuster published Monopolies Suck by Sally Hubbard on Oct. 27. The book is the first by Hubbard, who is Open Markets’ director of enforcement strategy. Hubbard examines how modern monopolies rob Americans of a healthy food supply, the ability to care for the sick, and a habitable planet, because monopolies use business practices that deplete rather than generate. Monopolists also threaten fair elections, our free press, our privacy, and, ultimately, the American Dream, Hubbard shows. In Monopolies Suck, Hubbard reminds readers that antitrust enforcers already have the tools to dismantle corporate power and that decisive action must be taken before monopolies undermine our economy and democracy for generations to come. In Monopolies Suck, Sally provides an important new view of America’s monopoly crisis and of the political and economic harms of concentrated private power. Order your copy here. 🔎 TIPS? COMMENTS? SUGGESTIONS? We would love to hear from you—just reply to this e-mail and drop us a line. Give us your feedback, alert us to competition policy news, or let us know your favorite story from this issue. |