Judge says Amazon must face lawsuit by indie audiobook authors
What's the story
Amazon must face a lawsuit from independent authors who accuse the e-commerce giant of monopolizing the audiobook retail market and driving up their distribution costs, a federal judge has ruled. For now, US District Judge Jennifer Rochon of Manhattan's federal court denied Amazon's attempt to dismiss the proposed class action filed by author Christine DeMaio, who writes under the name CD Reiss. Reiss seeks class action status on behalf of thousands of authors.
Antitrust claims
Audible violated antitrust rules
The lawsuit alleges that Amazon's audiobook division, Audible, violated antitrust laws by imposing higher distribution fees on independent and self-published authors. This is particularly for those who do not want to join a program, making Amazon the exclusive distributor for their books on Audible for 90 days. The program offers self-published authors 40% royalties for book distribution as opposed to 25% offered to non-exclusive authors.
Market response
Amazon denies any wrongdoing
In response to the lawsuit, Amazon has denied any wrongdoing and claimed that the audiobook market is "healthy and competitive." The company also argued that there is no proof that Audible's program has forced any authors into an exclusive deal. Further, it defended its right to invest more in promoting its exclusive content over other titles.
Market dominance
Lawsuit seeks over $5 million in damages
The lawsuit highlights that Audible is the world's largest audiobook retailer, with over 60% of domestic purchases. This is significantly higher than Apple's 20%. Following the judge's decision to deny Amazon's dismissal request, Steve Berman, a lead attorney for Reiss, said they were pleased with the ruling and look forward to advancing the case. The lawsuit seeks over $5 million in damages and class action status on behalf of authors.