Amazon.com AMZN-Q 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 on Monday night defended the 90-day exclusivity provision that its digital audiobook subsidiary Audible offers to self-published authors.
Amazon 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 violates U.S. antitrust law by charging higher fees for writers who decline to participate in Audible’s exclusivity program.
Amazon and lawyers for Reiss did not immediately respond to requests for comment on Tuesday.
Amazon bought Audible for about $300-million in 2008. The lawsuit called Audible the world’s largest audiobook retailer, accounting for more than 60 per cent of domestic purchasing compared with about 20 per cent 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 exclusivity program offers self-published authors 40 per cent royalties for the distribution of their work, compared with 25 per cent for authors who chose non-exclusive, competitive distribution.
Amazon’s 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 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 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.