Amazon Audiobook Monopoly Class Action: Are Authors Getting a Fair Deal?

A new class action lawsuit alleges Amazon wields a monopoly in the audiobook market, squeezing excessive fees from authors. Seattle-based author Christine DeMaio filed the proposed antitrust lawsuit in federal court, accusing Amazon of leveraging its market power to unfairly charge authors for audiobook distribution.

Bestselling Author Claims Amazon Has Unlawful Monopoly

DeMaio, who writes under the pen name CD Reiss, is a New York Times and USA Today bestseller who has been self-publishing for over a decade and producing audiobooks since 2016. As an experienced author who has won an Audie award, she has distributed audiobooks through Amazon on both exclusive and non-exclusive terms. For exclusive distribution, Amazon charges her at least 60% of the sale price, while non-exclusive titles incur a charge of at least 75%.

The lawsuit specifically alleges that Amazon is violating U.S. antitrust law by imposing higher fees on authors who choose not to exclusively distribute through their platform. DeMaio argues that Amazon's exclusivity agreements "lock up content," stifling competition and billions of dollars in audiobook sales. The lawsuit contends that due to Amazon's dominant market position, authors are forced into an unfair choice between accepting higher fees for non-exclusive distribution or being locked into Amazon's ecosystem.

Lawsuit Alleges Amazon Punishes Authors Who Seek Wider Distribution

For exclusive distribution through Amazon, authors are charged a substantial 60% of the audiobook's sales price, which is determined by Amazon itself. However, if authors opt for non-exclusive distribution and offer their work on other platforms, Amazon imposes an even steeper fee exceeding 75% of the sales price.

The lawsuit highlights the audiobook market's significant growth, which reached nearly $2 billion in 2022.  DeMaio argues that Amazon, through its 2008 acquisition of audiobook giant Audible, has established a dominant position in the market, capturing a staggering 60% share domestically, while Apple trails far behind at 20%.

“With its market power over authors, Amazon can charge supracompetitive fees and foreclose competition from alternative retailers,” the lawsuit states.

DeMaio’s attorney told Reuters that “authors deserved a fair price for their work and not to be the victims of Amazon’s abusive monopoly practices.”

Amazon No Stranger to Alleged Anti-Competitive Practices

DeMaio's legal representation, Hagens Berman Sobol Shapiro, is also at the forefront of a separate consumer antitrust lawsuit against Amazon. This additional lawsuit accuses Amazon of artificially inflating ebook prices on its platform.

These allegations of anti-competitive behavior extend beyond ebooks and audiobooks. Last year, the U.S. Federal Trade Commission (FTC) filed a lawsuit accusing Amazon of broader antitrust violations, including punishing sellers for offering lower prices on other platforms and imposing hefty fees on merchants. 

In the Amazon audiobook antitrust class action lawsuit, DeMaio aims to represent a putative class of all audiobook authors and rightsholders who contracted with Amazon and paid a distribution fee of at least 60% on their sales. She is suing for violations of the Sherman Act, alleging monopolization and attempted monopolization, and seeks over $5 million in damages, including treble damages, as well as a nationwide injunction to prevent further anti-competitive practices.

Case Details

• Lawsuit: CD Reiss v. Amazon.com Inc.
• Case Number: 2:24-cv-00851
• Court: U.S. District Court for the Western District of Washington at Seattle

Plaintiffs' Attorneys: 

• Steve W. Berman and Nathan Emmons (Hagens Berman Sobol Shapiro LLP)
• Phillip Cramer, Eamon P. Kelly, and Barry Frett (Sperling & Slater LLC)