Category: Tablet Commerce

The publishing company has now withdrawn from an ebook partnership with the tech giant.

An agreement has recently been reached between Penguin, the book publisher, and the European Commission, which brought an antitrust probe against the company to completion and applied a number of mobile commerce regulations.

The result was that Penguin would not be able to enter into certain specific types of partnerships.

Primarily the legislative arm of the E.U. gave its approval to the conditions that state that Penguin would not be able to enter into any agreements that would give it the power to establish the prices on the ebook titles being sold, instead of a retailer. One of the results of this new regulation is that a mobile commerce deal between the publisher and Apple was forced to disintegrate.

The mobile commerce “most favored nation” agreement between Apple and Penguin has had to end.

Within that mobile commerce plan, Apple allowed publishers to decide on the pricing that would be used for the sale of ebooks on its market, provided that they did not sell the same titles through another retailer for a lower price.

Previously, Apple and major book publishing companies had come to an “agency model” agreement for establishing the pricing for the electronic titles being sold over its marketplaces. That was a step away from the traditional “wholesale model” that is used by the majority of online and mobile commerce sellers, such as Amazon, where retailers were given the opportunity to resell ebooks for whatever price they wanted, including at or below cost.

Therefore, it did not come as much of a surprise that this strategy from Apple for ebook selling would subject it to considerable pressure and scrutiny in the European Union as well as in the United States.

Apple had to defend itself in a massive mobile commerce antitrust lawsuit from the United States Department of Justice. It lost that case earlier this year. The American judge determined that Apple was conspiring with book publishers to increase ebook prices. Though the wireless device manufacturer did appeal the American court’s decision, should the current ruling hold, the company may be required to pay damages worth almost $500 million.

Data highlights growth of mobile commerce in the US

Mobile commerce has become a major interest for many companies around the world. Consumers are becoming more comfortable with the idea of paying for goods and services with nothing more than a mobile device, which has lead companies to become more inclusive when it comes to the matter of mobile commerce. In order to understand why companies are showing so much interest in mobile payments, one must understand how many people, in the U.S. alone, own and use mobile devices regularly.

Studies show growth in tablet ownership

The Pew Research Center has teamed with the U.S. Census Bureau to release a number of studies concerning smartphone and tablet ownership as well as how these devices are used by consumers. These studies are part of the Pew Research Center’s Internet & American Life Project. According to the data contained in these studies, 34% of U.S. adults own a tablet device. This figure rose by 18% in May of 2012 as tablets began growing more popular in the mobile commerce field.

Tablets appeal to those interest in mobile commerce

Tablets are often considered more useful in mobile commerce than smartphones. This is due to the fact that tablets allow for a more comprehensive online shopping experience. Smartphones feature small screens than tablet devices, making it difficult to navigate some e-commerce sites. Tablets allow for more control in the mobile shopping experience, and an enjoyable experience is often enough to ensure than consumers continue participating in mobile commerce.

Mobile commerce expected to continue growing

The studies show that smartphone owners still outnumber those with tablets, but consumers favoring either device still show strong interest in mobile commerce. Both devices are heavily used for purposes such as social networking and entertainment, with mobile commerce showing strong growth over the past two years. Mobile commerce is expected to continue gaining momentum as consumers continue to grow more comfortable with making payments on their mobile devices.