Amazon Offers To Change E-Book Contracts To Settle EU Inquiry

(RTTNews) - Online retailing giant Amazon.com (AMZN) has offered to change clauses to its e-book contracts with publishers in order to settle an European Union antitrust probe.

Amazon is willing to change clauses that requires publishers to inform the company about more favorable or alternative offer it terms as good or better than those they sign with other e-book distributors. Amazon's offer if accepted by the EU will last five years and would allow publishers end contracts that link e-book discounts on Amazon to e-book prices on other online stores.

In June 2015, the European Commission opened an investigation into certain clauses included by Amazon in its contracts with publishers.

These clauses require publishers to inform Amazon about more favorable or alternative terms offered to Amazon's competitors and/or offer Amazon similar terms and conditions than to its competitors. The clauses want to ensure through other means that Amazon is offered terms at least as good as those for its competitors.

The Commission started the probe due to concerns that such clauses may make it more difficult for other e-book distributors to compete with Amazon by developing new and innovative products and services.