Antitrust Law Daily Wrap Up, ANTITRUST NEWS: German competition authority to examine audiobooks purchase agreement between Amazon subsidiary, Apple, (Nov 17, 2015)

By Michael Menzhuber, J.D., LL.M.

The Bundeskartellamt, the German competition authority, has initiated administrative proceedings against Amazon subsidiary Audible.com and Apple Computer Inc. The proceedings were initiated following a complaint by Börsenverein des Deutschen Buchhandels, the German Publishers and Booksellers Association, objecting to various practices used by Audible.com, including its exclusive supply of audiobooks to Apple's iTunes Store, the competition authority announced yesterday.

Audible.com is a leading supplier of audiobooks in Germany, specializing in audiobook downloads that can be accessed both from Audible.de as well as from the Amazon trading platform. It is one of the largest producers of audiobooks in Germany and Europe. With its iTunes Store, Apple operates one of the largest digital media trading platforms which—in addition to music, videos and apps—offers eBooks and audiobooks for download.

The companies have a long-term agreement relating to the purchase of audiobooks by Apple from Audible.com for sale in Apple's download shop iTunes Store.

"Both companies hold a strong position in the market for digital audiobooks in Germany," said Andreas Mundt, President of the Bundeskartellamt. "We therefore see ourselves obliged to examine more closely the agreement between these two competitors."

The Bundeskartellamt is also in close contact with the European Commission, which also has received the complaint.

News: Antitrust