UK Office of Fair Trading Investigates eBook Industry

The Independent newspaper reports that the UK Office of Fair Trading (OFT) a consumer protection watchdog has launched an enquiry into anti-competitive practises in the fast-growing eBook industry following a “significant number” of complaints:

The regulator did not name any of the parties affected by the inquiry, but is investigating whether any of the industry deals were anti-competitive and could affect trade in the UK. The investigation will be led by Andrew Groves, deputy director of the OFT. The issue focuses on publishers’ ability to set e-book prices using the “agency” pricing model, which has been held responsible for stifling competition.

In August, Connecticut’s attorney-general said his office had started an investigation into the pricing of digital books over concerns that agreements between retailers and publishers were anti-competitive. It has expressed these concerns to Apple and Amazon.

The news from the OFT came a day after Sony attacked Apple, saying the Californian electronics giant was blocking Sony’s customers from reading e-books on Apple’s devices.

Apple has blocked Sony from offering software that will allow iPad and iPhone users to read books they have bought at Sony’s online store, the Japanese group said.

The OFT released few details on the investigation but said the case was at an early stage and “it should not be assumed that the parties involved have breached competition law”.