Open Markets, the Authors Guild & American Booksellers Urge FTC and DOJ to Target Amazon’s Books Monopoly
FOR IMMEDIATE RELEASE: August 16, 2023
CONTACT:
Ashley Woolheater, woolheater@openmarketsinstitute.org
Raluca Albu, ralbu@authorsguild.org
Ray Daniels, ray@bookweb.org
With the FTC reportedly poised to file an antitrust suit against Amazon, the groups urge the regulators to keep their focus on threats to democracy, such as Amazon’s dominance of the US market for books
WASHINGTON – The Open Markets Institute, the Authors Guild, and the American Booksellers Association have sent a letter to the Federal Trade Commission (FTC) and the Department of Justice (DOJ) urging these agencies to focus on how Amazon abuses its monopoly power over the market for books and ideas, as regulators appear on the verge of bringing a major suit against Amazon.
“The open access to the free flow of ideas is essential to a well-functioning democracy. The government has the responsibility to ensure that actors with oversized power cannot control or interfere with the open exchange of ideas,” reads the groups’ letter to regulators. “Today the free exchange of ideas is impeded and warped by opaque algorithms and sales practices controlled by Amazon and premised on which publisher and/or author is willing and able to pay the highest extortionary tax to get their books promoted on Amazon’s website.”
“The ultimate effects of Amazon’s business model – which is based on manipulating readers – include the unfair promotion and suppression of specific ideas, authors, publishers, and the routine disruption of public debate,” the letter continues. “We need nothing more than common sense to understand that the sort of personalized recommendations that readers welcome in the local independent store will have vast structural effects on the overall market of ideas when pursued by an all-powerful, all-seeing monopolist.”
Read full letter here.
The Open Markets Institute and partners have for years warned of how Amazon endangers the free flow ideas through its dominance over America’s books market:
In 2021, Open Markets and the Authors Guild urged regulators at the DOJ to block the takeover of the publisher Simon & Schuster by the conglomerate Bertelsmann, which already owns Penguin-Random House, the largest publisher in the US. (The government successfully blocked that deal late last year).
In 2019 Open Markets, the Authors Guild, and PEN America sent a letter to the DOJ calling on the Antitrust Department to block a merger of the two largest book and magazine printers in the United States. (The government successfully blocked that deal.)
In 2016, Open Markets hosted the first policy discussion in Washington on Amazon’s danger to free expression (“Amazon’s Book Monopoly. A Threat to Freedom of Expression?”) at the New America Foundation, where Open Markets was then based.
In 2015, Open Markets, Authors United and the American Booksellers Association jointly called on the DOJ and the FTC to investigate Amazon for antitrust violations. “Amazon has used its dominance in ways that we believe harm the interests of America’s readers, impoverish the book industry as a whole, damage the careers of (and generate fear among) many authors, and impede the free flow of ideas in our society,” the groups wrote.
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