Independent Authors Accuse Amazon of Monopolizing the Audiobook Industry

A recent lawsuit brought by independent authors has accused Amazon of monopolizing the audiobooks market. Despite Amazon’s attempts to have the case dismissed by U.S. District Judge Jennifer Rochon, the judge has denied this request. This means that the class action, initiated by author Christine DeMaio, who publishes as CD Reiss, will move forward in court.

While it remains to be seen whether Amazon’s high fees for non-exclusive distribution will be deemed monopolistic, the situation raises concerns about how small authors are financially impacted when they refuse to grant exclusive distribution rights. The allegations focus on the practice of charging higher distribution fees for writers unwilling to enter into Amazon’s exclusive agreement. Authors can choose a non-exclusive option that allows them to sell their audiobooks across multiple platforms; however, this decision results in a significant earnings decrease—from 40% to 25%.

This discrepancy has been interpreted as potentially anti-competitive since authors seem to be penalized financially for opting out of exclusivity. Moreover, if the class action lawsuit succeeds, Amazon’s payout is only projected to be $5 million, which would be divided among thousands of participating authors. Such a settlement raises concerns that even if Amazon is found at fault, the financial consequences will be minimal compared to the profits earned through exclusive deals.

The relatively low penalty could set a dangerous precedent, suggesting that the financial gains from potential anti-competitive behavior may outweigh any fines imposed. As the case progresses, it remains uncertain how Judge Rochon will rule. The fact that the lawsuit is advancing signals that the judge may not find Amazon’s justifications for its pricing practices compelling.

Additionally, as AI technology makes audiobook production cheaper, the question arises whether Audible’s publication fees will remain unchanged, despite the reduced costs. This has led to skepticism about whether audiobook prices will correspondingly decrease, much like the rising costs seen in e-books.