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| Version 4 | Version 5 |
|---|---|
| Amazon accused of 'bullying' smaller UK publishers | Amazon accused of 'bullying' smaller UK publishers |
| (about 7 hours later) | |
| Amazon is facing a battle with UK publishers as it seeks to secure more advantageous terms in its latest round of contract negotiations. | Amazon is facing a battle with UK publishers as it seeks to secure more advantageous terms in its latest round of contract negotiations. |
| The web giant wants the right to print books itself if publishers fail to provide adequate stock, and wants publishers to match any pricing deals it offers to other distributers. | The web giant wants the right to print books itself if publishers fail to provide adequate stock, and wants publishers to match any pricing deals it offers to other distributers. |
| One mid-sized firm accused Amazon of "bullying," and warned that the company was destroying the industry. | One mid-sized firm accused Amazon of "bullying," and warned that the company was destroying the industry. |
| Amazon has not commented on the issue. | Amazon has not commented on the issue. |
| Trade magazine the Bookseller was first to report that Amazon had introduced a number of new clauses in its recent contract proposals to independent UK publishers. | Trade magazine the Bookseller was first to report that Amazon had introduced a number of new clauses in its recent contract proposals to independent UK publishers. |
| 'Print-on-demand' | 'Print-on-demand' |
| Among these were the right for Amazon to print its own copies of a book if a publisher runs out of stock. | Among these were the right for Amazon to print its own copies of a book if a publisher runs out of stock. |
| The Seattle-based company would do this using its "print-on-demand" equipment, and would require publishers to hand over electronic versions of their titles. | The Seattle-based company would do this using its "print-on-demand" equipment, and would require publishers to hand over electronic versions of their titles. |
| The process, which can print books more quickly than a traditional press, is generally thought to offer an inferior product. | The process, which can print books more quickly than a traditional press, is generally thought to offer an inferior product. |
| Publishers are concerned that if Amazon used this method to print books, customers would blame them, and not the tech firm, for the quality. | Publishers are concerned that if Amazon used this method to print books, customers would blame them, and not the tech firm, for the quality. |
| Another clause, known in the industry as a "most favoured nation" (MFN) proposal, asks publishers not to offer promotions to distributors without also offering them to Amazon. | Another clause, known in the industry as a "most favoured nation" (MFN) proposal, asks publishers not to offer promotions to distributors without also offering them to Amazon. |
| This would include selling books at a discount on the publishers' own websites. | This would include selling books at a discount on the publishers' own websites. |
| It also demands that publishers inform Amazon before offering e-book deals to other clients, and give the tech firm the same terms. | It also demands that publishers inform Amazon before offering e-book deals to other clients, and give the tech firm the same terms. |
| Unprecedented | Unprecedented |
| The BBC spoke to independent UK publishing companies who were alarmed at the proposals. | The BBC spoke to independent UK publishing companies who were alarmed at the proposals. |
| One representative of a mid-sized firm said Amazon had become "increasingly ruthless" in its negotiations, while another accused Amazon of "bullying". | One representative of a mid-sized firm said Amazon had become "increasingly ruthless" in its negotiations, while another accused Amazon of "bullying". |
| One boss added that they believed the MFN clause would cause Amazon to fall foul of competition rules, and should be of concern to regulators. | One boss added that they believed the MFN clause would cause Amazon to fall foul of competition rules, and should be of concern to regulators. |
| Publishers also told the BBC that Amazon generally prefers verbal agreements, and rarely documents its negotiations, but had done so in the latest round of talks, with one "mid-tier" firm saying this was the first time it had received correspondence outlining such terms. | Publishers also told the BBC that Amazon generally prefers verbal agreements, and rarely documents its negotiations, but had done so in the latest round of talks, with one "mid-tier" firm saying this was the first time it had received correspondence outlining such terms. |
| One independent publisher, which releases between 80 and 100 titles each year, said it had been approached by Amazon in the past with the above clauses. | One independent publisher, which releases between 80 and 100 titles each year, said it had been approached by Amazon in the past with the above clauses. |
| 'Ryanair moment' | 'Ryanair moment' |
| A senior manager told the BBC that if asked to agree to the terms, the firm's answer would be a "simple and monosyllabic no". | A senior manager told the BBC that if asked to agree to the terms, the firm's answer would be a "simple and monosyllabic no". |
| They also warned that Amazon was reaching a "Ryanair moment", when customers and suppliers would become uncomfortable with the way that the company operates. | They also warned that Amazon was reaching a "Ryanair moment", when customers and suppliers would become uncomfortable with the way that the company operates. |
| The BBC also approached several of the larger publishers, including Hachette, Penguin and Harper Collins, all of whom refused to provide comment. | The BBC also approached several of the larger publishers, including Hachette, Penguin and Harper Collins, all of whom refused to provide comment. |
| The Bookseller's editor, Philip Jones, told the BBC that if Amazon's terms were agreed, it would be a "form of assisted suicide for the industry". | The Bookseller's editor, Philip Jones, told the BBC that if Amazon's terms were agreed, it would be a "form of assisted suicide for the industry". |
| But he added that the negotiations might be a "tactic" by Amazon, and could be dropped before a final deal is struck. | But he added that the negotiations might be a "tactic" by Amazon, and could be dropped before a final deal is struck. |
| The BBC understands that similar terms were proposed in the past - although without the current forcefulness - but later abandoned by Amazon. | The BBC understands that similar terms were proposed in the past - although without the current forcefulness - but later abandoned by Amazon. |
| The negotiation process generally takes many months. | The negotiation process generally takes many months. |
| Competition investigations | Competition investigations |
| The tech firm is currently involved in a high profile spat with publishers Hachette in the US. The two companies are locked in discussions about how to share profits on e-books - a dispute which has led to price increases and a block on pre-orders of Hachette books. | The tech firm is currently involved in a high profile spat with publishers Hachette in the US. The two companies are locked in discussions about how to share profits on e-books - a dispute which has led to price increases and a block on pre-orders of Hachette books. |
| In a separate development, a German trade association has brought a complaint against Amazon to the country's competition authorities, claiming the firm abused its market dominance. | In a separate development, a German trade association has brought a complaint against Amazon to the country's competition authorities, claiming the firm abused its market dominance. |
| On Thursday, the Associated Press reported that the French government, in a bid to support the country's small bookshops, has adopted a bill that will prevent Amazon and other online retailers from offering free deliveries of discounted books. | On Thursday, the Associated Press reported that the French government, in a bid to support the country's small bookshops, has adopted a bill that will prevent Amazon and other online retailers from offering free deliveries of discounted books. |
| The EU commission confirmed to the BBC that it was monitoring the UK book industry. The EU has investigated MFN clauses in the past, but has never ruled them illegal. | |
| But Mr Jones also emphasised the positive role Amazon has played in the bookselling industry. | But Mr Jones also emphasised the positive role Amazon has played in the bookselling industry. |
| "The worst thing that could happen [to book publishers] would be for Amazon to go away," he said. | "The worst thing that could happen [to book publishers] would be for Amazon to go away," he said. |
| "The second worst thing would be for it to become more dominant." | "The second worst thing would be for it to become more dominant." |