From:
To:
 (COMP)
Cc:
 (COMP); COMP C2 MAIL
Subject:
RE: Meeting request 
 and national representatives - Digital Markets Act (DMA)
Date:
vendredi 8 octobre 2021 12:15:25
Attachments:
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Germany - Monopolkommission. DMA. Press release. 05.10.21.pdf
Germany - Monopolkommission. DMA. Full text. 05.10.21.pdf
 report on the interoperability of e-books formats..pdf
Dear Ms 
We fully understand the short notice of our request and we thank you nonetheless for your swift
response to our email.
With that said, we are happy to share our updated input on the DMA, particularly regarding the
interoperability of e-books and the scope of ancillary services.
1.  Interoperability of e-books – Amazon’s Kindle model
As discussed in our meeting earlier this year, our main concern with the current text of the DMA
is that, as it stands, the effective interoperability of e-book formats is not covered.
We believe it should be possible for consumers to read any legally acquired e-book in the format
of their choice on the device of their choice. However, this isn’t currently possible, mainly due to
the existence of dominant and closed ecosystems, such as the Kindle e-reader model.
To put it simply, Amazon’s Kindle e-reader has the particularity to lock customers in a closed
ecosystem. Kindle e-books use a specific file format (“AZW”), unique to this particular e-reader
which is neither transferable nor openable on other devices, such as the widely used Kobo or
Tolino e-readers. If customers are not able to open an AZW file on an e-reader other than Kindle,
a Kindle also won’t allow them to open a file format other than AZW.
The Kindle e-reader does not support e-book formats such as “EPUB”, the file format developed
by the International Publishers Digital Forum, which is widely used and recognised as a standard
within the book sector. The same goes for audiobook formats bought on the Amazon audio
platform Audible.
The impossibility for the customer to switch platform and provider at will, locks them in a
closed ecosystem and reduces their freedom of choice.
This lack of interoperability in e-book formats is particularly problematic because Amazon’s
Kindle is the dominant model in the market. As such, the Kindle format stifles competition and
prevents further technological development by third party competitors. Already in 2015, a
report from the European Commission pointed out that Amazon is, indeed, the main player in
the European e-books market with shares reaching close to 70% in the US, 60% in the UK and
around 40% in Germany and Spain (2015, Batikas, Gomez-Herrera and Martens). Data from
more recent years is harder to retrieve, but from what is available, it is clear that Amazon is still
the main player in the European and U.S. e-book market.
Therefore, as you will understand, we envisage the DMA as a vital legislation and opportunity to
overturn this trend and harmful practice.
European Commission investigation
As I’m sure you’re aware, the European Commission already highlighted its concerns with
Amazon’s dominant and harmful Kindle model:
In 2017, the Commission announced its decision on a proceeding against Amazon
regarding e-book most-favoured nation (MFN) clauses and related matters (see
here: case AT.40153).
Despite the case focusing mostly on MFN clauses, in paragraph 65 (2) of the

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decision (page 19-20), the Commission held that through its Kindle e-book reader,
Amazon operates a closed ecosystem that locks in consumers and represents a
barrier to entry or expansion in the market for the distribution of e-books. The
exact wording is as follows:
“The ability of e-book readers to drive sales and lock-in customers: with its Kindle e-book
reader, Amazon operates a closed "ecosystem" (or "walled garden"). Customers who own a
Kindle can use that e-book reader only for e-books purchased in Amazon's Kindle store.
Moreover, e-books bought in the Kindle store cannot be read on other e-book readers,
although they can be read on various e-reading devices such as tablets or smartphones
(including tablets and smartphones that are not manufactured and sold by Amazon under its
own brand) through the Kindle app (so-called "multi-homing"). This results in a situation in
which customers that have already purchased Kindle e-books may face costs in switching to
another e-book platform, due to the need to acquire an additional e-book reader and the
inability to transfer the library of e-books purchased in Amazon's Kindle store to a different e-
book reader. Whereas the closed Kindle ecosystem may not represent an insurmountable
barrier to entry and/or expansion in the market for the distribution of e-books (since multi-
homing on different devices seems to be a common practice amongst e-book readers), it does
reinforce Amazon's market power vis-à-vis its competitors since consumers willing to move
to another platform are likely to face switching costs and may therefore effectively remain
locked into Amazon's closed ecosystem.
Amazon and digital rights management (DRM)
To add to the above, Amazon also uses proprietary digital rights management (DRM) measures
to prohibit the free exchange of e-books between different ecosystems and to protect their own
ecosystem. For interoperability to take place, the different ecosystems must allow users to
import and export e-books, while still enforcing the DRM restrictions. Chair of the Federal Trade
Commission in the U.S., Lina Khan, already highlighted this potentially anticompetitive practice in
2017, in her well-reported antitrust article “Amazon’s Antitrust Paradox”, published in the Yale
Law Journal.
Our position
While there are no competition proceedings opened yet specifically on the question of e-book
interoperability per se, the harm of the practice for consumers and businesses alike is clearly
acknowledged and well documented.
In 2013, we commissioned a study on interoperability to the Johannes Gutenberg-Universität
Mainz in order to assess the different file formats available on the market, as well as the
possibility of establishing interoperability across all devices. The study, attached for your
consideration, demonstrated that with “EPUB” as a standard format, interoperability across
devices is completely possible. This is even truer now that the EPUB file format has evolved and
has become a standard within the book industry.
Our position also aligns with the Consumers’ Rights Directive, which makes disclosing
information about interoperability compulsory: “Before the consumer is bound by a distance or
off- premises contract, or any corresponding offer, the trader shall provide the consumer with
the following information in a clear and comprehensible manner: where applicable, any relevant
interoperability of digital content with hardware and software that the trader is aware of or can
reasonably be expected to have been aware of”.
We are convinced there is still time for the interoperability of e-book formats to be included
in the DMA, and we count on your support, as well as the European Parliament and the Council,
to make this happen.
2.  Retailing activities as ancillary services

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In addition to the issue of interoperability, we still see a need for clarification regarding the
current scope of the DMA, to ensure that the direct retailing activities of online marketplace
(which run in a parallel and indistinguishable manner to their intermediation activities), will also
be subject to the relevant obligations of the DMA, in order to avoid a loophole that would solely
benefit gatekeepers.
While the intermediation activity of the gatekeeper falls within the scope of the DMA, the
parallel retailing activity of online marketplaces acting as gatekeepers does not appear to be
subject to the obligations of Article 5 and 6. Should this exclusion remain, it would exacerbate
the great vulnerability the book sector has been suffering from ever since gatekeepers entered
the market. Ensuring that the parallel retailing activity of gatekeepers also be covered by the
DMA is, therefore, necessary to ensure that the DMA fulfils its ambitions
We are happy to attach a special report on the DMA by Germany’s Monopolies Commission
(Monopolkommission), published earlier this week, which supports our position. As you will see,
they too see the problem of leveraging of market power derived by gatekeepers from their
position in multi-sided markets. They expressly mention the situation of gatekeepers competing
as a seller on their own marketplace.
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With that said, having received support across several committees in the European Parliament
on our suggested changes to the questions of interoperability and ancillary services, we would
be grateful if you took our input into account, especially for the upcoming trilogue negotiations
with the Parliament and the Council.
We would equally be happy to discuss our position further with you, together with our
colleagues in the publishing sector, should you be available.
Thank you once again for taking the time to read through our position and we look forward to
staying in touch.
Kind regards,
Telephone: +
Email: 
Visit: 
1000 Brussels
Belgium
From: 
@ec.europa.eu> 
Sent: 06 October 2021 17:19
To: 
Cc: 
 
@ec.europa.eu>; xxxxxxxxxxxx@xx.xxxxxx.xx
Subject: RE: Meeting request 
 and national representatives - Digital Markets Act (DMA)
Dear Mr 
,

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Thank you very much for reaching out to us and for your readiness to discuss with us, as well as
for your earlier contributions to the ongoing reflections regarding the DMA.
I am afraid that this week is very busy on our side (and apologies for not getting back to you
earlier), so it was not possible to set up a meeting in short notice. That said, we are of course
very interested in any potential input you may have on interoperability and ancillary services or
other areas of the proposal. Please, do not hesitate to share with us any follow-up to your June
submission reflecting how your thinking may have advanced on those points.
With many thanks and kind regards,
From: 
> 
Sent: Tuesday, October 5, 2021 10:49 AM
To: 
@ec.europa.eu>; 
@ec.europa.eu>
Cc: 
>
Subject: Meeting request 
 and national representatives - Digital Markets Act (DMA)
Importance: High
Dear Ms 
, dear Mr 
,
I hope you’re both well.
I’m getting in touch from the 
 As you
may remember, we had an exchange earlier this year to discuss the DMA proposal and our
priorities for the bookselling sector within the text.
Since then, together with our colleagues from the 
 we
have been monitoring the process at the European Parliament, and have noted a significant
amount of attention and work on the topics of interoperability and ancillary services, which are
two areas that we have particularly been working on and seeking to reinforce.
In our efforts to keep in touch during the legislative process, and given the evident interest from
the Parliament to prioritise these topics in the DMA, we thought this might be a good
opportunity to exchange views once again to understand your current stance on
interoperability and ancillary services, particularly since following our last exchange we were not
particularly sure as to whether our position on interoperability was clear and compatible with
the DMA as a whole.
We have the chance to receive the visit of two colleagues: 
),
lawyer and legal advisor on competition matters and 
), senior
counsellor on policy matters and very knowledgeable on interoperability and DRMs. Therefore,
we would be grateful if you accepted to meet us in person, a group of 6 people, either
tomorrow Wednesday 6th October or Thursday 7th October to discuss these pressing issues for
the entire book value chain.
We are aware it is very last minute, but we believe it is a unique opportunity to discuss these
topics on the DMA, particularly with German and French representation, and taking into account
the upcoming French Presidency and their strong will to reach an agreement on the file.
Thanking you in advance for your consideration and very much looking forward to your
response.
Kind regards,
Telephone: +
Email: 
Visit:

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1000 Brussels
Belgium

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