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Sunday, 10 June 2012

Barnes and Noble unhappy with the DOJ settlement

Barnes and Noble are unhappy with the US DOJ's settlement on the price fixing row, claiming it will allow Amazon full powers in discounting books.

Barnes & Noble Inc. disagreed with the U.S. government’s e-books settlement this week, noting that it could lead to higher e-book and hardback prices and less of a choice for millions of book buyers and sellers.

The brick-and-mortar bookstore chain filed a complaint with the U.S. Justice Department Thursday in an effort to battle the government’s e-books settlement.

Barnes & Noble said the settlement would lead to “higher overall average e-book and hardback prices and less choice, both in how to obtain books and in what books are available.” Before the agency pricing model, Barnes & Noble was “losing substantial money in an effort to compete with Amazon’s pricing and was unable to gain significant market share.”

Barnes & Noble is constantly struggling to compete with the likes of Amazon simply because it cannot compete pricewise. However, the book retailer recently announced a partnership with Microsoft for "Newco" e-book subsidiary, which enhance e-book offerings via Microsoft's Windows 8 and Barnes & Noble's Nook tablet. Barnes & Noble will own about 82.4 percent of Newco while Microsoft will own 17.6 percent.

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