Amazon and a number of major book publishers are facing a potentially very costly class-action lawsuit after being accused of colluding to inflate ebook pricing on retail platforms other than Amazon's own.
As Reuters reports, Amazon is accused of working with the five largest US book publishers, collectively referred to a the "Big Five," which includes Hachette, HarperCollins, Macmillan, Penguin-Random House and Simon & Schuster. The lawsuit has been brought by law firm Hagens Berman, who filed a similar lawsuit back in 2011 against Apple and the Big Five.
In the 2011 lawsuit, Apple settled for $400 million and the Big Five agreed to not interfere with retailers' discounts for two years. Now Hagens Berman saysAmazon has stepped in to the same role Apple played back in 2011 while the Big Five "failed to learn anything from the experience." The result is a collusion that has seen the price of ebooks rise …