The U.S. Department of Justice will take Apple and publishers to court over their pricing system for ebooks. Apple and the publishers use the agency model in which the publishers set the prices for the books and the retailers, like Apple and Amazon, cannot sell below those prices. The alternative would be wholesale pricing, which lets the retailers sell the books at any price they wish. The DOJ sees the agency model as illegal price fixing. But there is much debate about which model is better for consumers, retailers and publishers.
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Apple and DOJ Clash Over Ebook Pricing
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Not a single author can do business this way. WE get paid by the publishers, who have overhead which includes us. They are responsible for our royalty payments. Since ,when you think about this, the Authors who most of the work when it comes to actually writing and doing the formating which takes months may times, should get the lions share of what is being taken in monetarily from ebooks. Such is not the case with any of the Big publishers or Amazon in Particular. If an ebook is figured to cost 16.00 then the ereader company ,whoever it is, gets a big chunk of the percentage of the sale for essentially doing nothing but having written a way to take advantage of the person who did all the work. If Amazon or Apple or whoever are made to sell anything at far below the wholesale cost( what ever that means with digital work it usually only means something that is tangible and in hand) then books are doomed. Quit crying about high prices and while actual books do cost, there is a good reason. If you consider the long hours that a book takes to write and the low income of funds that they receive, and the long months it takes to pay authors, if you were an author you would want to get as much as you can from your work. There is more to this but that is for another reply.
Long Time User, Program Director for MACCHUG.org and Award Winning Children's Author and Columnist T.E.Watson