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Author’s Guild Attacks Amazon for Predatory Pricing

The Author’s Guild is taking on Amazon. In a blog post on its site today, the organization argues that Amazon is building an anticompetitive ecosystem that will hurt the book publishing industry.

For example, the guild claims that Amazon’s ability to take a loss on eBook sales is hurting their value. Here is more from the post: “Amazon had deployed its buy-button removal weapon before, but never so publicly, never on such a massive scale, and never (to our knowledge) as a means of shielding its ability to use a separate anticompetitive tactic: its practice of routinely selling e-books at a loss. Such practices, commonly known as predatory pricing, are a means of using superior capital resources not to innovate nor to provide better service, but to weaken or eliminate competition.”

eBookNewser has more: “The Guild is concerned that Amazon’s innovation could hurt the industry. The blog explains, ‘those who capture a market tend to be a bit rough on other participants in the market. They also tend to stop innovating.’”

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