US Judge Rules Amazon Must Face Audiobook Antitrust Lawsuit

A federal judge has ruled that Amazon must face a proposed class action lawsuit brought by independent authors alleging that Audible, Amazon's audiobook platform, unfairly dominates the market and imposes punitive royalty structures that coerce authors into exclusive distribution agreements. The lawsuit, filed by author Christine DeMaio (pen name CD Reiss), contends that Audible offers a 40% royalty for exclusivity but only 25% for broader distribution, effectively penalizing authors who refuse exclusivity and inflating distribution costs. Audible controls more than 60% of the U.S. audiobook market, significantly outpacing competitors such as Apple, which holds about 20%. Amazon denies any wrongdoing and maintains that its business practices are lawful and the market remains competitive, arguing there is no proof the royalty incentives force exclusivity. However, Judge Jennifer Rochon found sufficient grounds to deny Amazon’s motion to dismiss, allowing the case to proceed to discovery on whether Audible’s agreements effectively extend exclusivity and violate antitrust laws. The lawsuit seeks class action status for thousands of authors and over $5 million in damages, highlighting broader concerns about big tech’s power over content creators.