Amazon Inks Deal With Penguin Random House

Posted on June 19, 2015

Amazon.com and Penguin Random House have inked a deal for the sale of ebooks and print books. Amazon, as usual, refused to give details of the agreement, but said in a statement to Publishers Weekly that it has signed "long-term agreements with Penguin Random House in both the US and the UK."

Penguin Random House didn't have a lot to add. It told Publisher's Weekly: "We do not discuss our relationships with our retail partners. But, as you can see, we still are in business with Amazon, and with all our retail partners, and will continue to be."

With the inking of this deal, Amazon now has deals in place with the five biggest book publishers. It is safe to assume that this deal is similar to the ones signed with the other major book publishers.

Amazon may be forced to reveal more than it wants to about those contracts if the European Commission has its way. The EC has launched an anti-trust probe into the way Amazon.com sells ebooks. The EC watched the Justice Department's lawsuit against Apple and the major book publishers play out, and apparently wants in on the action. Only the EC wants to go after Amazon.

ReCode reports that the EC has heard there is a provision in those contracts which requires the publishers to tell Amazon if it offers more favorable or alternative terms to one of Amazon's competitors. If that is true, the EC says it's illegal and is restraint of trade.

Amazon has said it is happy to cooperate with the EC, but we find it highly unlikely that either Amazon or any of the publishers want those agreements made public.