For the retailer, it's because they don't want to be
undercut by other retailers.
Cue quickly realized that, in order for the agency model to work, the same deal must be struck with all electronic book vendors, lest Apple's prices be
undercut by other retailers.
Not exact matches
How vulnerable are they to being
undercut by other large
retailers?
By circumventing the need for a physical location, Amazon was able to
undercut retailers all over the world and rapidly achieve a scale that few
others could rival.
Sometimes cloth diaper co-ops are run
by people who have no
other purpose than to
undercut their local
retailers and are thrilled beyond words when that
retailer is impacted to the point of having to shut down their business.
The agreements, which critics say prevent Amazon and
other retailers from
undercutting Apple's charges, sparked an investigation
by the European Commission in December last year.
The online
retailer «threatened the long - term, overall health of the book publishing industry,» said Penguin, «
by creating barriers to entry,
undercutting the margins and incentives of
other sellers, fostering a perception of ebooks as lowcost commodities, and threatening the viability of book publishers and authors, as well as
other book selling outlets vital to the marketing and promotion of books».
Mobile operator O2 is jumping on the hype
by announcing a deal for subscribers renewing their contracts: instead of a new phone, they can pick up a bundle that includes the Kinect and an Xbox 360, for # 190 ($ 305)-- a price that is
undercutting other retailers by # 60 ($ 96).