New York, July 03: The US government has initiated an
anti-trust investigation into the proposed USD 125 million-
deal between Google and book publishers related to copyright
issues.
Google reached a settlement with the Authors Guild and
the Association of American Publishers for about USD 125
million in October 2008, whereby the copyright owners would be
compensated in return for displaying and selling their works
online.
The agreement inked last year is subject to review by a
Federal Court.
In a letter to the New York District Court, the US said
it has opened an anti-trust probe into the proposed deal
between Google and representatives of publishers and authors.
"At this preliminary stage, the US has reached no
conclusions as to the merit of those concerns or more broadly
what impact this settlement may have on competition.
"However, we have determined that the issues raised by
the proposed settlement warrant further inquiry," the letter
written by Deputy Assistant Attorney General William F
Cavanaugh said.
The deal would provide Google the right to display and
sell the books online while the profits would be shared
between the internet major, publishers and authors.
According to the letter, the US also "expect to have
on-going discussions with the parties, as well as other
interested persons, in order to assess the competitive impact
of the proposed settlement," the letter said.
The settlement was reached after allegations from authors
and publishers that Google's initiative to digitise books and
make them available online would result in copyright
violations.
Bureau Report
First Published: Friday, July 03, 2009, 22:19