Penguin Group’s CEO John Makinson has issued a statement explaining that the company will not be settling with the DOJ over the current price-fixing investigation. Instead, it looks like Penguin and Macmilan – along with Apple – are likely to take the fight all the way. You can read his full statement here.
According to Makinson, the agency book model is still a good deal for consumers and should be defended. He also says that the DOJ’s complaint contains a number of mis-statements and omissions. It’s a pretty firm response from the Penguin boss, and shows that the DOJ’s case is unlikely to be resolved quickly.
Also of note is Makinson’s claim that the decision to go with agency pricing back in 2010 is one of the key factors that have contributed to the explosion in the ebook market over the past couple of years. He notes that this has led to a decline in the price of ebook readers, and he argues that both competition and choice must be preserved.