Re: Wholesale vs Price Fixing
Apple say, "Sell via us, and you can set any price you like, as long as we get 30% and you sell no cheaper through any other outlet."
Publishers respond, "So, we can set our price at whatever we like, and we can use our deal with Apple as an excuse not to lower it for anyone? Done!"
Amazon: "Hey, what happened to our volume discount?"
Publishers: "You know, it's a real bummer, but we signed this deal with Apple, so we can't offer you lower prices anymore."
Amazon: "That's really going to cut into our sales of both ebooks and ebook readers."
Publishers: "Suck it, Amazon. Suck it long and suck it hard."
Ironically, if the publishers had just negotiated harder with Amazon in the first place, they wouldn't be in this situation.