• <b>Mayfair Book Auctions, July 16:</b><br>Lot 1. Albertus Magnus, De Natura Locorum, 2nd edn, 1515. £3000 to £4000.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 22. George Cooke, Scenery of the East India Islands, 1811-13. £4500 to £5500.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 23. J.M. Crozet, Nouveau vouage a la Mer du Sud, 1st edn, 1783. £4000 to £6000.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 27. J.P.J.Du Bois, Vies des Gouverneurs Generaux, 1st edn, 1763. £1200 to £1800.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 28. Wm Ellis, Authentic Narrative...Captain Cook, 1st edn, 1782. £2500 to £3500.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 31. Thomas Forrest, Voyage to New Guinea, 1st edn, 1779. £1500 to £2000.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 32. Forster & Forster, Voyage round the World, 1st edn, 1777-78. £4500 to £5500.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 38. Gianetti, Elogy of Captain James Cook, 1st edn, 1785. £2500 to £3500.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 46. Otto von Kotzebue, Entdeckungs Reise, 1st edn, 1821. £3500 to £4500.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 52. Alejandro Malaspina, Viaje politico-scientifico, 1st edn, 1885. £2000 to £3000.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 60. Sydney Parkinson, Journal of Voyage to the South Seas, large paper, 1773. £4500 to £5500.
    <b>Mayfair Book Auctions, July 16:</b><br>Lot 64. Nathaniel Portlock, A Voyage round the World, 1st edn, 1789. £4000 to £6000.
  • <center><b>Sotheby’s<br>The Collection of a Connoisseur:<br>History in Manuscript<br>Online Auction 8-15 July
    <b>Sotheby’s:</b> Elizabeth I. Early letter signed, to Edward North, First Baron North 1560. £12,000 to £18,000.
    <b>Sotheby’s:</b> Catherine II. Empress of Russia Letter signed to Prince Grigori Aleksandrovich [Potemkin] 1784. £2,000 to £3,000.
    <b>Sotheby’s:</b> Nelson. Autograph letter signed, to Captains of Egyptian Club, 3 August 1798. £12,000 to £18,000,
    <center><b>Sotheby’s<br>The Collection of a Connoisseur:<br>History in Manuscript<br>Online Auction 8-15 July
    <b>Sotheby’s:</b> Charles Darwin. Photograph signed, c.1871 by Oscar Gustave Rejlander. £6,000 to £8,000.
    <b>Sotheby’s:</b> T.E. Lawrence. Autograph letter signed, to Major Littleton, 14 October 1918. £10,000 to £15,000.
    <b>Sotheby’s:</b> Napoleon. Letter signed, ordering General Desaix to sail to Malta, prior to the Egyptian Expedition, 1798. £2,000 to £3,000.
  • <b>Swann Auction Galleries July 16:</b><br>N.C. Wyeth, <i>The Black Arrow,</i> oil on canvas, for the book by Robert Louis Stevenson, 1916. $150,000 to $250,000.
    <b>Swann Auction Galleries July 16:</b> Laurent de Brunhoff, mixed media color study for <i>Babar’s World Tour,</i> 2005. $10,000 to $15,000.
    <b>Swann Auction Galleries July 16:</b> Hilary Knight, <i>Eloise with Valentine,</i> watercolor, ink & pencil, 2015. $25,000 to $35,000.
    <b>Swann Auction Galleries July 16:</b> Howard Pyle, <i>It was a Comrade from His Own Regiment,</i> oil on canvas, for <i>Harper’s Monthly Magazine,</i> 1909. $20,000 to $30,000.
    <b>Swann Auction Galleries July 16:</b><br>Coby Whitmore, <i>‘Poor baby! You want me so much,’ she said,</i> acrylic, for <i>The Saturday Evening Post,</i> 1968. $6,000 to $9,000.
    <b>Swann Auction Galleries July 16:</b><br>Al Hirschfeld, <i>Charley’s Aunt,</i> pen & ink, for the Broadway revival, <i>The New York Times,</i> 1940. $20,000 to $30,000.
    <b>Swann Auction Galleries July 16:</b><br>Erté, <i>Décor de Laideronnette,</i> gouache set design for third movement of <i>Mother Goose,</i> 1949. $5,000 to $7,500.
    <b>Swann Auction Galleries July 16:</b> Vince McIndoe, <i>Villainous Last Supper, DC Comics,</i> oil on canvas, 2016. $4,000 to $6,000.
    <b>Swann Auction Galleries July 16:</b> Arthur Getz, <i>Rooftop Party,</i> casein tempera, cover illustration for <i>The New Yorker,</i> 1970. $2,000 to $3,000.
  • <center><b>Fonsie Mealy Auctioneers<br>The Collectors’ Sale<br>July 7 – 15, 2020</b>
    <b>Fonsie Mealy, Jul. 7 – 15:</b> O'Fihely, Maurice Abp. <i>Questiones subtilissme Scoti in metaphysicam Aristotelis</i>, Venice (Octavianus Scoti) 20th November 1497. 8,000 to 12,000 €
    <b>Fonsie Mealy, Jul. 7 – 15:</b> Pococke (Richard). <i>A Description of the East and some other Countries,</i> 3 vols. in 2, L. (W. Bowyer) 1743. 2,250 to 3,500 €
    <b>Fonsie Mealy, Jul. 7 – 15:</b> Keogh (John). <i>Botanalogia Universalis Hibernica, or A General Irish Herbal Calculated for this Kingdom, giving an account of the Herbs, Scrubs…</i>, Corke (George Harrison) 1735. 1,000 to 1,500 €
    <center><b>Fonsie Mealy Auctioneers<br>The Collectors’ Sale<br>July 7 – 15, 2020</b>
    <b>Fonsie Mealy, Jul. 7 – 15:</b> Perry (Charles). <i>A View of the Levant particularly of Constantinople, Syria, Egypt and Greece,</i> L. (T. Woodward) 1743. 800 to 1,200 €
    <b>Fonsie Mealy, Jul. 7 – 15:</b> Shaw (Thomas). <i>Travels, or Observations Relating to Several Parts of Barbary and the Levant,</i>, Oxford (The Theatre) 1738. 600 to 700 €
    <b>Fonsie Mealy, Jul. 7 – 15:</b> [French (Nicholas) Bishop of Ferns] Attributed, <i>Recit Exact et Fidele de la Vente et Partage du Roiaume d'Irlande Fait Sous Charles II…,</i> Milan (Chez Charles Joseph Quinto) 1724. 500 to 700 €
    <center><b>Fonsie Mealy Auctioneers<br>The Collectors’ Sale<br>July 7 – 15, 2020</b>
    <b>Fonsie Mealy, Jul. 7 – 15:</b> [French (V. Rev.Dr. Nicholas, Bp of Ferns.)] <i>The Unkinde Desertor of Loyall Men and True Frinds,</i> 12mo, n.p. 1676. 500 to 700 €
    <b>Fonsie Mealy, Jul. 7 – 15:</b> Yeats (W.B.) <i>Plays and Controversies,</i>, N.Y. (The MacMillan Company) 1924, Signed Limited Edn. 500 to 700 €
    <b>Fonsie Mealy, Jul. 7 – 15:</b> Barrie (J.M.) & Thomson (Hugh) illus. <i>Quality Street, a Comedy in Four Acts,</i> L. (Hodder and Stoughton) 1901, Limited Edition, signed by the artist. 500 to 700 €
    <center><b>Fonsie Mealy Auctioneers<br>The Collectors’ Sale<br>July 7 – 15, 2020</b>
    <b>Fonsie Mealy, Jul. 7 – 15:</b> Molyneaux (William). <i>The Case of Ireland's being bound by Acts of Parliament in England Stated,</i> [London 1719]. 200 to 300 €
    <b>Fonsie Mealy, Jul. 7 – 15:</b> Johnston's (W. & A.) Map of South Africa, to illustrate the Military Operations 1900. 100 to 150 €

Rare Book Monthly

Articles - April - 2014 Issue

Apple Appeals Judgment It Engaged in E-Book Price-Fixing Scheme

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Apple appeals the judgment against it.

As promised, Apple has filed a blistering appeal against a federal court decision that held it had participated in a conspiracy with book publishers to fix the prices of electronic books at artificially high levels. “Apple and the Publisher Defendants agreed to work together to eliminate retail price competition in the e-book market and raise the price of e-books above $9.99,” wrote District Court Judge Denise Cote in her opinion. Just the opposite, responded Apple. “Apple’s entry as an e-book retailer marked the beginning, not the end, of competition.” Who is right? Stay tuned.

 

Here is what we know. In late 2009, Amazon controlled 90% of the e-book market. Part of their strategy for gaining such control was low pricing, sometimes selling books at less than their cost, particularly with the most popular titles. It made it extremely difficult for others to enter the business.

 

While book publishers were able to sell these e-books to Amazon for the prices they wanted, they were still unhappy. Two things bothered them. One was they feared Amazon's unexpectedly low e-book prices would interfere with their ability to sell printed books, a more lucrative market. Secondly, no one likes to have most of their sales go to a single customer. It can give that customer enormous leverage over the supplier in future negotiations. That is a very risky position for any supplier.

 

Evidently, various publishers were aware that their compatriots were similarly distressed by this situation, though we do not know how much direct communication there was between them. After they, and Apple, were sued by the Department of Justice and others for a conspiracy to fix prices, all five publishers agreed to pay large sums in settlement. Whether they settled out of guilt, or, as one publisher claimed, simply because the potential financial risk of a loss in court was so great it would put them out of business, is uncertain.

 

In December of 2009, Apple approached the publishers with a plan to open an online e-book store, to go along with its newly introduced tablet computer, which can also be used as an e-reader. However, Apple concluded this would not be feasible unless two conditions were met. First, it must make a reasonable profit. Apple has no interest in building market share by losing money, as Amazon does. Secondly, it did not want to have anyone else undercutting their prices, making them look bad. If Apple needed a 30% profit, while Amazon sold at cost, naturally Apple's price would be 30% more for the same books, an embarrassing situation. Apple may charge a high price for its merchandise, but that is because it is unique, Apple-branded merchandise. It does not want to sell the same thing as Amazon for a much higher price.

 

Apple explained its requirements to the publishers. What it wanted was for the publishers to adopt “agency” pricing. At the time, the publishers were selling their e-books (primarily to Amazon) at a set wholesale price. Amazon then set the retail price. The bookseller was free to go as low (or high) as it wanted, depending on how much or little it was willing to make on each sale. In agency pricing, however, the publisher sets the retail price. All retailers must sell their books for at least that much. The retail prices they set afforded a 30% commission for the retailers. Of course, this meant that books Amazon was selling at cost or a loss would rise by at least 30%.

 

Exactly what happened next is unclear. What we do know is that a few weeks later, all at once, the five publishers switched over to agency pricing. Amazon had little choice but to accede. Meanwhile, Apple began selling e-books. According to Apple, between themselves and Barnes & Noble (who could also now afford to sell e-books), they control 30%-40% of the market, meaning Amazon's share has dropped substantially from its previous 90%.

 

So the question becomes, what did Apple do in that period between telling the publishers individually what they demanded to sell e-books and the publishers switching to Apple's required agency model? Apple had a legal right to tell publishers it would only sell if prices were set so they could make 30% while no one else could sell for less. That is not illegal price fixing. What is illegal is for them to act in concert with multiple publishers to set prices – that is a legal “conspiracy” to fix prices. Even if the publishers conspired with each other to set prices, which is illegal, that does not necessarily mean Apple conspired with them if Apple acted independently with each. However, if, as the court ruled, in the Department of Justice's words, Apple was a “ringmaster” in this conspiracy, then they have violated the law.

 

The court looked at the evidence and said, in effect, of course Apple was pulling the strings. There is something in the law called a “per se” standard that says there is an antitrust violation where the evidence is obvious. And then, there is another standard where it is not so obvious, but if the evidence establishes participation in a conspiracy, it is also a violation. The court focused on “per se” guilt, but said Apple was guilty under both standards.

 

Apple responded that the evidence does not establish such participation, and that the law requires clear evidence, not just actions that are consistent with a conspiracy. The demands it made on publishers, Apple said, were strictly normal ones to meet its business needs, and did not require a conspiracy. They say they simply told the publishers what they needed in order to sell e-books, and left it to the publishers to decide whether to meet their requirements. If the publishers conspired among themselves, that was not Apple's doing. They neither participated nor encouraged the publishers to act in concert.

 

Apple also challenged whether the result of their requirements was anti-competitive anyway. They cite the fact that Amazon's share has substantially decreased, while new vendors now offer e-books for sale. That is pro-competition, not a hindrance to it, Apple argues. There are now more retailers selling e-books. On prices, Apple also cited statistics that e-book prices, as a whole, have come down. Self-published books, in particular, Apple claims, have seen their prices drop, as the 30% profit Apple demands leaves the self-publishers 70%. Apple says this is twice what Amazon used to give them before Apple began carrying their books, enabling these publishers to lower their retail prices. And one more thing – Apple says they did not demand publishers lower retail prices, only that the minimum price leave them a 30% margin. Publishers could set the prices at $9.99 or even less if they chose, so long as the wholesale price was 30% less. What appears to have happened, if Apple's statistics are right, is that overall e-book prices came down, though the prices for the most popular books, which Amazon used to sell at little or no profit, went up.

 

The Department of Justice has said it will respond to Apple's appeal in May. You can be sure they will give a far less benign account of Apple's actions. Judge Cote's decision paints a series of discussions between Apple and the publishers that implies that firm was knowingly leading them down the road of joint price setting, even while holding separate conversations. It will then be up to the Appeals Court to confirm that ruling, overturn it, or order a new trial. One thing you can count on – Apple will not give up easily or go quietly into the night. This case may one day find itself in the Supreme Court.

Rare Book Monthly

  • <center><b>Sotheby’s<br>Music, Continental Books and Medieval Manuscripts<br>Online Auction 7-14 July
    <b>Sotheby’s:</b> Isaac Newton. <i>Philosophiae naturalis principia mathematica.</i> £280,000 to £350,000.
    <b>Sotheby’s:</b> Johann Sebastian Bach. Two early editions: Fantaisie pour le Clavecin. £1,000 to £1,500.
    <b>Sotheby’s:</b> Mozart. Early edition, in parts, of the Concerto in A for piano and orchestra. £2,000 to £3,000.
    <center><b>Sotheby’s<br>Music, Continental Books and Medieval Manuscripts<br>Online Auction 7-14 July
    <b>Sotheby’s:</b> Beethoven. First edition, second issue of the Ninth Symphony op.125. £1,000 to £1,500.
    <b>Sotheby’s:</b> Cervantes. <i>Don Quixote,</i> Barcelona, 1617. £2,000 to £3,000.
    <b>Sotheby’s:</b> Johann Sebastian Bach. Three first and early editions of music for organ. £1,200 to £1,500.
  • <center><b>Forum Auctions<br>Fine Books, Manuscripts<br>and Works on Paper<br>July 16, 2020</b>
    <b>Forum Auctions, July 16:</b> Ptolomaeus (Claudius). <i>Cosmographia,</i> first edition, Vicenza, Hermann Liechtenstein, 13 September 1475. £150,000 to £200,000.
    <b>Forum Auctions, July 16:</b> Schoener (Johann). <i>Opera mathematica,</i> 3 parts in 1, first edition,The Honeyman copy in contemporary binding, Nuremberg, J. Montanus and U. Neuber, 1551. £30,000 to £40,000.
    <b>Forum Auctions, July 16:</b> Lucian of Samosata. <i>Dialogoi, editio princeps,</i> with fine illuminated title-page, Florence, Lorenzo de Alopa, 1496. £20,000 to £30,000.
    <center><b>Forum Auctions<br>Fine Books, Manuscripts<br>and Works on Paper<br>July 16, 2020</b>
    <b>Forum Auctions, July 16:</b> Pian (Jean Baptiste de). [Architectural Alphabet], 26 chromolithographs by Leopold Muller after Pian, Vienna, 1842-44. £15,000 to £20,000.
    <b>Forum Auctions, July 16:</b> Rogers (Bruce).- Holy Bible (The)..., one of 200 copies on handmade paper, designed by Bruce Rogers, bound in modern crimson morocco, gilt, Oxford, 1935. £10,000 to £15,000.
    <b>Forum Auctions, July 16:</b> Jenner (Edward). <i>An Inquiry into the Causes and Effects of the Variolae Vaccinae…,</i> first edition, Printed for the Author, by Sampson Low, 1798. £8,000 to £12,000.
    <center><b>Forum Auctions<br>Fine Books, Manuscripts<br>and Works on Paper<br>July 16, 2020</b>
    <b>Forum Auctions, July 16:</b> Voyages.- Cook (Capt. James).- Parkinson (Sydney). <i>A Journal of a Voyage to the South Seas, in his Majesty's Ship the Endeavour,</i> second edition, Charles Dilly...& James Phillips, 1784. £4,000 to £6,000.
    <b>Forum Auctions, July 16:</b> [Clemens (Samuel Langhorne)] "Mark Twain". <i>Adventures of Huckleberry Finn,</i> first edition, first state, New York, Charles L. Webster and Company, 1885. £4,000 to £6,000.
    <b>Forum Auctions, July 16:</b> [Voight (Hans Henning)], "Alastair". Herod, for 'Salome: Drame en un Acte', original drawing in red & black ink over pencil, [c.1922]. £4,000 to £6,000.
    <center><b>Forum Auctions<br>Fine Books, Manuscripts<br>and Works on Paper<br>July 16, 2020</b>
    <b>Forum Auctions, July 16:</b> James (M.R.) <i>Ghost Stories of an Antiquary,</i> first edition, signed presentation inscription from the author to A.C. Benson, 1904. £3,000 to £4,000.
    <b>Forum Auctions, July 16:</b> Remarque (Erich Maria). <i>All Quiet on the Western Front,</i> first English edition, signed presentation inscription from the author, 1929. £3,000 to £4,000.
    <b>Forum Auctions, July 16:</b> Ashendene Press.- More (Sir Thomas). <i>A Fruteful and Pleasaunt Worke...Utopia,</i> one of 100 copies, bound in black goatskin by J.Franklin Mowery, Ashendene Press, 1906. £3,000 to £4,000.

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