Independent authors are taking on Amazon’s audiobook giant, Audible, in a lawsuit claiming the company has a monopoly on the market. A U.S. District Judge recently rejected Amazon’s attempt to dismiss the case, meaning this significant challenge to Audible’s business practices is now set to proceed to court. This lawsuit centers on Audible’s royalty structure, which authors argue unfairly penalizes them if they choose not to distribute their audiobooks exclusively through Amazon.
Why Authors Are Suing Audible
At the heart of this legal battle is how Audible compensates authors and publishers, particularly those who are self-publishing through Amazon’s Audiobook Creation Exchange (ACX). The core complaint, as reported by Good E Reader, is that authors face a significant drop in potential earnings if they decide to sell their audiobooks on platforms other than Audible.
Under Audible’s terms, authors can earn a higher royalty rate (around 40%) if they agree to make Audible the exclusive distributor of their audiobook for 90 days. However, if an author wants the freedom to sell their audiobook on other platforms, such as Apple Books, Google Play, or Kobo, they must choose a non-exclusive agreement. This non-exclusive choice, according to the lawsuit, reduces their royalty rate from Audible to a much lower 25%.
Authors claim this difference isn’t fair; it pressures them into exclusivity with Audible, even if they’d prefer broader distribution. They see it as an anti-competitive tactic that leverages Amazon’s dominant position in the audiobook market to limit author choice and potential earnings from other sales channels.
The Audible app icon representing Amazon's audiobook platform.
What This Lawsuit Means
The lawsuit is a proposed class action, led by author Christine DeMaio (who writes as CD Reiss), representing potentially thousands of independent authors. Amazon’s move to have the case thrown out was rejected by Judge Jennifer Rochon, signaling that the court sees enough merit in the authors’ claims for the case to move forward.
This doesn’t mean Amazon will necessarily lose, but it does mean they will have to defend their distribution practices in court. The judge’s decision suggests she is open to examining the authors’ arguments about the higher non-exclusive fees.
One point of contention raised in the discussion around the lawsuit is the potential outcome. Even if the authors win this class action, Amazon might only have to pay out a settlement, potentially around $5 million as speculated. For a company of Amazon’s size, this amount might be less than what they’ve already gained by encouraging authors into more profitable (for Amazon) exclusive deals. Critics argue such settlements may not be a strong enough deterrent against future anti-competitive behavior.
The landscape of audiobook creation is also changing rapidly, with the service already utilizing AI to create audiobooks much cheaper than traditional human narration. This shift raises questions about publishing fees moving forward, regardless of exclusivity deals. It remains to be seen if cost savings from AI narration will be passed on to authors or consumers, especially when e-book prices are increasing despite their minimal production costs.
Looking Ahead
With the lawsuit moving past the dismissal stage, the focus shifts to discovery and potentially a trial. This case is important because it highlights the power dynamics between major platforms and independent creators in the digital age. It could potentially reshape how audiobooks are published and how authors are compensated, depending on the court’s final decision. Independent authors and listeners alike will be watching closely to see if this challenge results in a more equitable distribution model in the booming audiobook market.
