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US publishers have confirmed that they have been approached by the Texas attorney general's office over a possible inquiry into Apple's entrance into the e-books market. Both HarperCollins and Hachette US told the Wall Street Journal they had been contacted by Texas officials, but refused to give details.
Earlier, US trade website http://publishersmarketplace.com/lunch/archives/006578.php" target="_blank">Publishers Lunch reported that Apple was the subject of an anti-trust inquiry by the Texas Attorney General's office into the agency model. The publication cited well-placed sources as claiming the queries had started in early to mid-April - within days of the launch of Apple's iPad and iBookstore.
PL added: "As best we can determine, the questioning so far has been highly-focused in scope, directed at the largest book publishers and at least some retailers." Some described the questioning to PL, as a general "fishing expedition" for information, which could either "go on for months, or they can be over quickly". PL suggests that publishers are actively trying to limit the scope of inquiry so that companies are not overwhelmed, and because they still see Amazon as the more dominant force in the market.
The WSJ noted that state antitrust authorities tend to be overshadowed by their federal counterparts. "But some states have been particularly aggressive in enforcing antitrust laws—including Connecticut, New York and Texas." Apple is already facing probes into its requirements for software developers building apps, and over its online music business. But as PL noted Apple has repeatedly emerged unscathed "from issues" that might have hampered other companes.
As previously reported in The Bookseller, several UK publishers had concerns about Apple's pricing model, leading to some walking away from negotiations.