Amazon.com Inc. (AMZN.O) is under fire in a proposed class action lawsuit, accused of monopolizing the audiobook market and forcing authors to pay exorbitant distribution fees.
The lawsuit, filed in a Seattle federal court by author Christine DeMaio (known by her pen name CD Reiss), claims that Amazon’s practices violate U.S. antitrust laws. DeMaio argues that Amazon charges higher fees for authors who don’t exclusively distribute their work through its platform, effectively locking up content and stifling competition.
Attorney Steve Berman, representing DeMaio, stated that authors deserve fair compensation for their work and should not fall prey to Amazon’s monopolistic practices. The suit alleges that Amazon’s exclusivity agreements hinder competitors and have a profound impact on the audiobook market, which saw sales nearing $2 billion in 2022.
Amazon’s acquisition of Audible in 2008 for $300 million has made it the largest audiobook retailer, commanding over 60% of the U.S. market, compared to Apple’s 20%. The lawsuit seeks over $5 million in damages and aims to secure class action status for thousands of authors and rights holders. According to the complaint, Amazon’s distribution fee is at least 60% of sales, increasing to 75% for non-exclusive audiobooks.
Berman’s firm, Hagens Berman Sobol Shapiro, is also handling a separate antitrust lawsuit against Amazon, accusing it of inflating ebook prices. Furthermore, the U.S. Federal Trade Commission (FTC) has previously accused Amazon of antitrust violations, alleging that the company punishes sellers for offering better prices on other platforms and imposes hefty fees on merchants.
The case is listed as CD Reiss v. Amazon.com in the U.S. District Court for the Western District of Washington, No. 2:24-cv-00851. Legal representation for Amazon has yet to make an appearance.
