Justice Department Suit: Apple Responds; B&N Stock Battered
A day after the Justice Department filed suit against Apple and five publishers over the agency model for e-books, Apple, which has not settled, called the charges of collusion "simply not true."
Quoted in the Wall Street Journal, Apple spokeswoman Natalie Kerris said, "The launch of the iBookstore in 2010 fostered innovation and competition, breaking Amazon's monopolistic grip on the publishing industry." She said, too, that the company uses something like the agency model in other areas. "Just as we've allowed developers to set prices on the App Store, publishers set prices on the iBookstore," she said.
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Wall Street has a clear idea of winners and losers in the Justice Department's suit: on double the usual volume and on a strong day for the Dow, Barnes & Noble shares fell 6.4%, to $10.98, near a 52-week low, and down 17% this month.
The Wall Street Journal said that the the drop "reflected the broad sentiment in the publishing world that Amazon.com is likely to emerge a far stronger competitor in the fast-growing e-book business now that it once again will be able to discount digital books."
Forrester analyst James McQuivey said that heavy e-book discounting resulting from the suit creates "a huge problem for Barnes & Noble. Amazon is building a tremendous customer relationship that they can monetize across many categories of goods, not just books. Even if they decide to take a hit on e-books, they can find other places to make up that margin. Barnes & Noble doesn't have that same luxury."
In building its digital business over the past several years, B&N has made major investments that have soured Wall Street and is projected to have an operating loss of $62 million this fiscal year, which ends April 28.
In other suit news, the Journal quoted one publishing executive who predicted a return by some or all of the publishers to the wholesale model for selling e-books. And even if some publishers retain the agency model, they may still have to discount "if the pricing gap is too large on heavily discounted titles on Amazon." From a strictly financial point of view, publishers would benefit from greater sales of e-books on a traditional sales basis, even if heavily discounted.








Author 
J.K. Rowling's upcoming novel for adults will be titled
Barnes & Noble confirmed yesterday that its new
The Ian Fleming estate announced that
Bestselling novelist John Grisham told CBS This Morning he expects
Last week at a taping of NPR's Wait, Wait... Don't Tell Me at the Chase Auditorium in Chicago: (from l.) Peter Sagal, host of the show; Emily Ecton, a writer and producer on the show and author of Project Jackalope (Chronicle); and Becky Anderson, president of the American Booksellers Association and owner of Anderson's Books in Naperville and Downers Grove, Ill.
BBC America will co-produce the British miniseries
Production has begun on
In 1977,
Rosamund Lupton (Sister) offers up an intricately plotted combination of thriller, speculative fiction and mother-daughter celebration in Afterwards. On an afternoon seemingly like any other, Grace Covey expects to collect her eight-year-old son, Adam, and 17-year-old daughter, Jenny, from their exclusive school and meet her husband to celebrate Adam's birthday. When the school building bursts into a fiery inferno and Grace runs into the blaze to save Jenny, the family's calm suburban life devolves into a nightmare.
"Melancholic" is an apt description of my feelings when I learned about Tabucchi's recent