The Honorable Herbert Kohl, Chairman, The Honorable Michael S. Lee, Ranking Member Subcommittee on Antitrust, Competition Policy and Consumer Rights United States Senate, Committee on the Judiciary 225 Dirksen Senate Office Building Washington, DC 20510

Dear Senators Kohl and Lee,

The recent filing of the Department of Justice (DOJ) case against price fixing by five major publishers in the e-book market underscores the ongoing effort of antitrust authorities to define the proper role for antitrust at a key moment in the development of the digital economy. The economic efficiency and consumer benefit of digital distribution of goods and services are transforming the way the market meets consumer demand. Incumbent physical space firms that are confronted with a more efficient business model will stop at nothing to preserve their dominance. The actions of the antitrust authorities and others to ensure that nascent competition is not squelched by anticompetitive tactics should include the full range of antitrust powers – denial or conditioning of mergers and acquisitions, prevention of unilateral monopoly abuse, and blocking collusion.