The Texas attorney general is reportedly conducting an inquiry on the electronic book market. The e-book business is an area where pricing has been shaken up by Apple Inc. and the way e-books are being sold for the iPad. According to reports in the Wall Street Journal, two major publishers have been approached by the state agency.
Company officials at Lagardere SCA's Hachette Book Group confirmed that the publishing house was contacted by Texas officials. A spokeswoman for News Corp.'s HarperCollins Publishers said that the publishing house received a request for documents from the Texas attorney general's office. Both companies declined to comment any further. The probe was earlier reported by the book-industry publication Publishers Marketplace. According to the publication, Apple was a target of the preliminary inquiry.
While it is not clear what areas of inquiry Texas is pursuing, a possible focus could be Apple's e-book pricing and its impact on consumers. To attract content for the iPad, Apple opted for an agency pricing model. Publishers set their own retail prices and receive 70 percent of the price while the seller receives 30 percent. Five of the six major publishing houses have reportedly embraced the agency model.
Antitrust agencies have been taking a closer interest in Silicon Valley companies in general. The Department of Justice is making preliminary inquiries about Apple Inc.'s practices in the music business.
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