June 11 (Reuters) - Amazon.com ( AMZN ) must face a
lawsuit by independent authors accusing the e-commerce giant of
monopolizing the retail market for audiobooks and causing them
to overpay for the distribution of their works, a federal judge
ruled on Wednesday.
U.S. District Judge Jennifer Rochon in the federal court in
Manhattan rejected for now Amazon's ( AMZN ) bid to dismiss the proposed
class action by author Christine DeMaio, who publishes under the
name CD Reiss.
Reiss sued last year, alleging Amazon's ( AMZN ) audiobooks unit
Audible violated antitrust law by charging higher distribution
fees for independent and self-published writers who decline to
participate in a program that makes Amazon ( AMZN ) the exclusive
distributor for books on Audible for 90 days.
The program offers self-published authors 40% royalties for
book distribution, compared with 25% for authors who chose
non-exclusive, competitive distribution.
Amazon ( AMZN ) and Audible did not immediately respond to requests
for comment. Amazon ( AMZN ) has denied any wrongdoing, saying the
audiobook market is "healthy and competitive."
Steve Berman, a lead attorney for Reiss, on Wednesday said
they welcomed Rochon's order and looked forward to the next
phase of the litigation.
Audible is the world's largest audiobook retailer,
accounting for more than 60% of domestic purchasing compared
with about 20% for Apple, according to the lawsuit.
Amazon ( AMZN ), in seeking dismissal of the lawsuit, said Reiss had
shown no evidence that Audible's program had induced any authors
to sign an exclusive deal.
Amazon ( AMZN ) also told Rochon that it was lawful for the company
to spend more resources promoting its exclusive content than on
other titles.
The lawsuit seeks more than $5 million in damages and class
action status for thousands of authors.
The case is CD Reiss v. Amazon.com ( AMZN ), U.S. District Court for
the Western District of Washington, No. 2:24-cv-00851.
For plaintiff: Steve Berman of Hagens Berman Sobol Shapiro;
and Phil Cramer of Sperling Kenny Nachwalter
For defendant: Carrie Mahan, Ben Mundel and Randi Singer of
Sidley Austin
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