Amazon and Hachette reach a deal on book prices
November 13, 2014 12:11 PM
Amazon.com Inc. and Hachette Book Group have settled their months-long dispute over the prices of books sold by the No. 1 merchant in the Internet Retailer Top 500 Guide.
Terms were not disclosed beyond both companies saying in a joint statement that they have signed a “multi-year agreement for e-book and print sales in the U.S.” with terms taking effect in 2015. In late October, Amazon reached a similar agreement with publisher Simon & Schuster.
“We are pleased with this new agreement as it includes specific financial incentives for Hachette to deliver lower prices, which we believe will be a great win for readers and authors alike,” says David Naggar, Amazon’s vice president for Kindle.
Amazon dominates e-book sales with 60% of the market, according to Forrester Research Inc.
During the dispute, Amazon delayed shipments of Hachette titles and prevented pre-orders of some of the publisher’s books. The dispute reportedly affected some 5,000 books.
The roots of this dispute go back about four years, when Amazon signed a new electronic book pricing agreement with Hachette Book Group that enabled the publisher to set the prices of its own books. That was a concession for Amazon, which had been heavily discounting e-books as a way to drum up interest in the Kindle, which Amazon introduced in 2007. That agreement expired earlier this year.