Amazon Issues Additional Credits for eBook Antitrust Settlement

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Amazon.com began notifying some customers yesterday that they’re entitled to additional credits from a 2012 class action settlement over allegations the publishers conspired with Apple to raise eBook prices higher than the $9.99 fee charged by Amazon for Kindle purchases.

The credits were added to eligible customer accounts on July 23, 2015, and will automatically be applied to their next purchase of any Kindle book or a print book sold by Amazon.com, regardless of the publisher. The credits will be valid through July 31, 2016, according to this FAQ for the Attorneys General eBook Settlements provided by Amazon.

The eBook settlements resolved antitrust lawsuits filed by the Attorneys General of 49 states, the District of Columbia and five U.S. territories and commonwealths accusing the nation’s top publishers of conspiring with Apple to fix and raise the retail prices of digital books, allegedly to drive Kindle out of the marketplace and increase marketshare for Apple’s iBook.

All five publishers and Apple denied the allegations but entered into class action settlement agreements at different times to resolve the litigation.

In December 2013, a federal court approved legal settlements by publishers Hachette, HarperCollins, Simon & Schuster, Macmillan, and Penguin. Those settlements resulted in initial credits that were given in March 2014 to Amazon.com customers who purchased a Kindle book published by Hachette, HarperCollins, Simon & Schuster, Penguin or Macmillan between April 2, 2010 and May 21, 2012.

The credit amount awarded to customers was based on how many qualifying eBooks they purchased and the type of title they purchased. For example, a New York Times Bestseller purchase carried a $1.32 per-book credit, while a non-bestseller purchase carried a $0.30 credit, according to the terms of the settlement agreement.

Amazon said the additional Kindle credits are being provided due to a clarification of the definition of New York Times Bestseller as used in the settlement agreements between the publishers, states and Class plaintiffs.

More information about the additional Amazon Kindle credits can be found here and here.

The case is In re: Electronic Books Antitrust Litigation, Case No. 1:11-md-02293, in the U.S. District Court for the Southern District of New York.