#Amazon forcing competitors to raise prices on e-books

Amazon is forcing its competitors to jack up their e-book prices, a new lawsuit alleges.

The pricing problems stem from a deal Amazon struck with five major book publishers, the Wall Street Journal reported, citing court papers filed in federal court in New York on Thursday.

The deal prevents rival retailers from selling any of the five publishers’ e-books at a price lower than on Amazon, the suit alleges.

The five publishers are HarperCollins Publishers, Lagardère Hachette Book Group, Penguin Random House, Simon and Schuster, and Macmillan.

The suit alleges the retail giant charges publishers high commissions and other costs, “which in turn significantly increases the retail price of the e-books they sell on Amazon.com,” according to the Journal.

But under the deal, e-books by the five publishers have to sell at the same, high Amazon price, the suit alleges, calling it “a conspiracy to fix the retail price of e-books.”

The suit was filed by the law firm Hagens Berman, which is seeking class action status, the Journal reported.

Authorities in Connecticut and California are also investigating Amazon’s business practices, the outlet reported.

Amazon and the publishers have not commented on the lawsuit.