Dan Brecher
Counsel
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Amazon is a retail powerhouse, so it can be an author’s best friend or, as Hachette – one of the big New York publishers – is finding out, it can also be your worst enemy. Amazon has had an uncomfortable relationship with the writing community and it has been taking action to discourage shoppers from buying books by Hachette. In response, authors took to social media to object to Amazon’s bullish tactics.
Some of the tactics being used by Amazon include charging more for books by Hachette, recommending other books by different authors, or delaying delivery of Hachette’s books (sometimes for weeks). Hachette claims it is timely delivering books to Amazon, while the online retailer claims they are out of stock. These machinations leave editors and authors powerless.
The feud began when contract negotiations between Amazon and Hachette fell apart. Amazon was seeking better terms and Hachette wasn’t budging. In an attempt to put pressure on Hachette, Amazon began its secret online subterfuge.
Both sides of the fight have something to lose. Amazon reportedly controls approximately a third of the book business, which makes it essential to big publishers like Hachette. Amazon’s marketing has focused on being the consumer’s friend, so it stands to tarnish its reputation as it pushes away readers and authors. With book retailers such as Barnes & Noble struggling, Amazon has become the primary means for authors to sell their books.
It is assumed that Amazon is playing hard-ball with Hachette and other suppliers because its stock shares are down this year and the analysts are not optimistic about earnings in their forecasts. Sadly, Amazon’s attempt to focus on the bottom line will only hurt the little guys, who are also their primary customers.
If you have any questions about the issues discussed above or would like to discuss other business law matters, please contact me or the Scarinci Hollenbeck attorney with whom you work.
- Practices: Corporate Transactions & Business
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