Today's Read Contributor
A significant legal battle is unfolding as Amazon has been ordered by a federal judge to face a lawsuit filed by independent author Christine DeMaio, known by her pen name CD Reiss. The case accuses Amazon’s subsidiary, Audible, of monopolizing the audiobook market and violating antitrust laws. DeMaio’s lawsuit specifically targets Audible’s pricing practices, alleging that the company imposes unfairly high distribution fees on self-published authors who refuse to join Amazon’s exclusive distribution program.
The core of the dispute centers around Audible’s so-called “exclusivity deal.” Authors who choose this option must commit to a 90-day exclusivity period, during which their audiobooks can only be distributed through Audible. In exchange for this exclusivity, authors receive a royalty rate of 40%. In contrast, those who opt for non-exclusive distribution arrangements are only offered a 25% royalty, with the added burden of higher distribution fees. According to DeMaio, these practices not only harm authors financially but also create a marketplace that unfairly favors Audible and Amazon.
The Manhattan federal court, under Judge Jennifer Rochon, has declined Amazon’s request to dismiss the case, allowing it to move forward. The lawsuit is seeking over $5 million in damages, along with the potential for class-action status, which could involve thousands of authors who feel similarly wronged by Audible’s business practices. Audible, which controls more than 60% of the U.S. audiobook market, is at the center of the accusations, which allege that its monopoly powers harm the overall competition and limit opportunities for smaller publishers and independent authors.
Despite the mounting legal pressure, Amazon has denied any wrongdoing. In its defense, the company maintains that the audiobook market remains competitive and that its exclusive agreements with authors provide benefits for both parties. However, the court has determined that there is enough evidence to justify a thorough examination of the claims in court.
The outcome of this case could have widespread implications for the future of the audiobook industry. If the lawsuit succeeds, it could lead to significant changes in Audible’s distribution model, possibly opening the door for more equitable opportunities for independent authors. For now, the legal process will continue to unfold, with authors and industry observers closely watching how Amazon’s dominance in the audiobook market is challenged.
