Bad News For Amazon
Currently, the Amazon-Hachette dispute seems to be leaning in Amazon’s favor (my opinion), despite the fact that a whole bunch of literary heavyweights have taken up the cause of the Big Five publisher. For those of you not familiar with the situation, Amazon and Hachette are currently locked in a monetary dispute that, as time goes on, seems to favor Amazon coming away from the disagreement in the best shape. However, all is not hunky dory in the Amazon camp. Here are a few recent news story to illustrate some of the problems the giant online retailer may be facing in the near future, not to mention their growing competition for the ebook market.
Another Federal Lawsuit
Currently, the Federal Trade Commission (FTC) is suing Amazon over its children’s in-app purchases. According to the Feds, Amazon has made it way too easy for minors to make online purchase through a variety of mobile and non-mobile apps. The Feds want to make it impossible for children to purchase online without their parent’s permission. Amazon does not deny the situation, but responds by saying that they are already improving the situation.
Children’s Book Author Turns Down Amazon-backed Award
Just about the same time as news of the Federal lawsuit was released, Allan Ahlberg, a UK children’s author, turned down a lifetime achievement award, because Booktrust, the giver of the award, has used Amazon funds to award the recipient. Ahlberg cites Amazon’s use of Luxembourg as a tax dodge, while selling a large volume of books in Great Britain, as the main reasoning behind his refusal. Reportedly, Amazon has avoided millions in British taxes by claiming to be a Luxemborg-based business,
Despite the Hachette thing, all the hoopla from successful authors and the FTC lawsuit, Amazon’s biggest problem may be competition from other ebook retailers. Although Amazon my have dominated this new bookselling phenomena in the past, I expect other ebook publishers to make inroads on the market in the years to come. Competition is a good thing, really.