Penguin scraps Apple's eBook pricing deal

PanARMENIAN.Net - Apple's eBook pricing agreement with Penguin has come to an end, with the bookseller moving to ward off an EU antitrust probe, Digital Spy said.

The controversial deal, which has been under investigation for the past 16 months, prevented rival retailers such as Amazon from selling the publisher's digital titles for cheaper.

"Penguin confirms that, subject to the market test currently under way, it has reached an agreement with the European Commission to settle its investigation into the establishment of agency pricing agreements for eBooks," said Penguin in a statement.

"Penguin's position that it has done nothing wrong remains unchanged and the company continues to believe that the agency pricing model operates in the best interests of consumers and authors.

"While we disagree with some elements of the Commission's analysis, we are settling as a procedural matter to clear the decks in anticipation of our proposed merger with Random House."

Although the abolition of the deal spells an end to the EU's probe, the two companies remain under scrutiny in the US, where Apple CEO Tim Cook has been ordered to testify in court.