Sept 17 (Reuters) - Amazon.com ( AMZN ) has asked a U.S. judge to
dismiss what it called a "far-fetched" 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.
In a filing in Manhattan federal court, Amazon ( AMZN ) on Monday
night defended the 90-day exclusivity provision that its digital
audiobook subsidiary Audible offers to self-published authors.
Amazon ( AMZN ) also said the market for audiobooks was competitive,
with Apple and Google offering rival platforms.
Author Christine DeMaio, who publishes under the name CD
Reiss, alleged in her June lawsuit that Amazon ( AMZN ) violates U.S.
antitrust law by charging higher fees for writers who decline to
participate in Audible's exclusivity program.
Amazon ( AMZN ) and lawyers for Reiss did not immediately respond to
requests for comment on Tuesday.
Amazon ( AMZN ) bought Audible for about $300 million in 2008. The
lawsuit called Audible the world's largest audiobook retailer,
accounting for more than 60% of domestic purchasing compared
with about 20% for Apple.
Industry-wide sales of audiobooks have steadily risen in
recent years, reaching nearly $2 billion in 2022, according to
the lawsuit.
Amazon's ( AMZN ) exclusivity program offers self-published authors
40% royalties for the distribution of their work, compared with
25% for authors who chose non-exclusive, competitive
distribution.
Amazon's ( AMZN ) filing said its optional exclusivity provisions,
which do not apply to top-sellers from major publishers, are
"limited in both duration and share of affected audiobook
sales." It said the program's 90-day window is shorter than the
1-to-3 year range that courts use to determine competitive harm
from an exclusivity arrangement.
"The complaint alleges no facts showing that Audible has
somehow hobbled Google or any other identified rival by inducing
some self-published authors to sign exclusive deals," Amazon's ( AMZN )
filing said.
Switching from exclusive to general distribution is
permanent, Reiss' lawsuit said. Reiss said Audible's policy "is
designed to prevent experimentation, innovation, and a test of
competition by discouraging authors from ever distributing on a
competitive basis."
Amazon ( AMZN ) also said it was lawful for the company to spend more
resources promoting its exclusive content than on other titles.
Reiss is seeking class-action status for thousands of
authors and rights holders.
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 Phillip Cramer of Sperling & Slater
For defendant: Carrie Mahan, Benjamin Mundel and Randi
Singer of Sidley Austin
Read more:
Amazon ( AMZN ) accused of audiobook monopoly in author class action
Amazon ( AMZN ) defeats US consumers' class action over Whole Foods
delivery fees
FTC lawsuit over Amazon's ( AMZN ) Prime program set for June 2025
trial
Amazon ( AMZN ) fends off US class action over 'guaranteed' delivery
window