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October 08, 2008 Est 1999 Scotland's award-winning independent newspaper
Amazon accused of squeezing publisher
Hachette says online giant is making unfair demands
By Edd McCracken, Arts Correspondent

A MAJOR battle has erupted between Amazon and the UK's biggest publisher in the most public fallout yet between the powerful online retailer and the book world.

Amazon has removed several key Hachette Livre UK titles from sale on its British website in an effort to pressurise the publisher to give it a greater percentage of its profits, according to Hachette's group chief executive.

Tim Hely Hutchinson delivered a scathing attack on the conduct of Amazon.co.uk in an email sent to all the publisher's authors in which he accused the website of "effectively creating a breach of trust between Amazon and its customers".

High-profile authors and titles such as James Patterson's The 6th Target, Kate Mosse's Labyrinth and new hardbacks by Stephen King and Dan Cruickshank all feature on Amazon.co.uk without the vital buy new' option.

Amazon already receives on average more than 50% of the recommended retail price of Hachette Livre UK's books, said Hutchinson.

"Despite these advantageous terms, Amazon seems each year to go from one publisher to another making increasing demands in order to achieve richer terms at our expense and sometimes at yours," he wrote.

If Amazon's demands continued at this pace, he added, Amazon would soon take all the money usually shared between publisher, author and printer.

"We are politely but firmly saying that these encroachments need to stop now."

He also warned that these "sanctions" would affect Amazon's popularity with the book-buying public and that its "aggressively low" pricing on high-profile titles was damaging traditional bricks and mortar booksellers, something which Hachette did not want to provide additional "ammunition" for the website to do.

Hachette Livre UK's companies include John Murray, Little Brown, and Headline.

Last night major bodies within the publishing industry backed Hachette Livre UK in the dispute.

The Society of Authors acknowledged that Amazon has been a force for good in helping sell more books, but by refusing to sell titles in "the biggest shop window in the world" it would harm authors.

"The arguments put forward in Tim Hely Hutchinson's email are ones we absolutely support," said a spokeswoman. "There should be a limit in how much it Amazon takes for what it does and one has to applaud any publisher who takes a stand on these ever growing discounts. It's been happening for years and publishers have been weak in taking a stand.

"But in the short term it's regrettable that Amazon is penalising individual authors as road-kill as a side effect of their dispute."

"It shows a preparedness on Amazon's part to fight pretty dirty," said Clare Alexander, managing director or Aitken Alexander Associates, one of the country's leading literary agencies which represents the likes of Sebastian Faulks, V.S. Naipaul, and Germaine Greer.

"That's disturbing because Amazon has been pretty universally perceived by me and by all our authors, as having been the good guys in a world where high street book sellers have been in decline.

"I don't believe this is about prices for consumers. In the last five years the only things that have got cheaper are books. This is about profit margins."

A spokesman for Amazon said: "As a company we do not comment on our relationships with publishers."

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Posted by: Plobotsky on 11:58pm Sat 7 Jun 08
Amazon is a greedy global multinational with revenues of 14 billion dollars and 17 thousand staff.

Hachette is part of the greedy Lagardere global multinational with revenues of 14 billion euros and 30 thousand staff.

They are having a spat. Dear me, how sad, never mind.

Why does the Sunday Herald, itself part of the greedy Gannett Company global multinational with revenues of 8 billion dollars and 50 thousand staff, not report the fact that this isn't a story of a poor wee publisher being beaten over the head by a greedy global multinational, but is in fact a story of two greedy global multinationals, just plain at it?
Posted by: fifer on 7:35am Sun 8 Jun 08
says it all when they refuse to comment.as good as an admission
Posted by: Andy Bronton, Colchester on 9:02am Mon 9 Jun 08
The comment by Clare Alexander that "Amazon has been pretty universally perceived by me and by all our authors, as having been the good guys in a world where high street book sellers have been in decline" shows a serious lack of commercial awareness. Amazon's success has been built on, and the cause of, much of that "decline" in traditional book shops!
Posted by: Tim, Miami on 6:49pm Sat 28 Jun 08
Regarding Plobotsky comments:

Dear me, how trite. All large companies are "greedy" and thus irrelevant I guess. Never mind that they employ, by his count, 97,000 people. No value in that I suppose.
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