Marilyn Monroe photos on auction in Poland

WARSAW, Poland (AP) — Who doesn't want a picture of Marilyn Monroe?

Hundreds of photographs of the blonde bombshell and other celebrities, including famous ones of Monroe in bed and as a ballerina, were being sold Thursday evening at an auction house in Poland.

Bidders and spectators packed the Desa Unicum house in Warsaw, where 238 pictures by the late American fashion and celebrity photographer Milton H. Greene were up for sale.

Most of these pictures of Monroe were taken from 1953 to 1957 when Greene was her advisor and business partner. He made many of the prints during Monroe's lifetime and they are highly valued by collectors.

As the bidding began, a black-and-white photo of a reclining Monroe in black stockings sold for 50,000 zlotys ($16,000), and another of her in a ballerina's dress sold for almost $20,000. A picture of her in bed sold for 26,000 zlotys ($13,000.)

The auction also offered Greene's pictures of Audrey Hepburn, Grace Kelly and Liza Minnelli. Other greats in the vast portrait collection, which was estimated at $680,000, included Cary Grant, Frank Sinatra, Marlene Dietrich, Paul Newman, Alfred Hitchcock and Marlon Brando.

The photos come from a collection of some 4,000 Greene pictures that Poland obtained from Chicago businessman Dino Matingas in the mid-1990s as the result of a complex communist-era embezzlement scandal linked to the buy-out of Poland's state debt. Proceeds from the auction will go to the Polish government.

Some of the images have never been published before, according to Marta Maciazek, the Polish official in charge of cleaning up the mess from the corruption affair.

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Obama's health care overhaul turns into a sprint

WASHINGTON (AP) — The long slog has turned into a sprint. President Barack Obama's health care law survived the Supreme Court and the election; now the uninsured can sign up for coverage in about 11 months.

"We are out of the political gamesmanship and into the reality," said Sandy Praeger, Kansas' Republican insurance commissioner. Next week, states have to say if they're committed to building the framework for delivering health insurance to millions.

Even House Speaker John Boehner, R-Ohio, says "Obamacare is the law of the land." But not all hurdles have been cleared.

Republican governors who opposed the law have to decide whether it's better for their states to now help carry it out. The administration could stumble carrying out the complex legislation, or get tripped up if budget talks with Congress lead to scaling back the plan.

"We are still going to be struggling through the politics, and there are important policy hurdles and logistical challenges," said Andrew Hyman of the nonpartisan Robert Wood Johnson Foundation, helping states carry out the law. "But we are on a very positive trajectory."

Instead of being dismantled by a Republican president and Congress, Obama's law is now on track to take its place alongside Medicare and Medicaid. The action starts right away.

A week from Friday, states must notify Washington if they'll be setting up new health insurance markets, called exchanges, in which millions of households and small businesses will shop for private coverage. The Health and Human Services Department will run the exchanges in states that aren't ready or willing.

Open enrollment for exchange plans is scheduled to start Oct. 1, 2013, and coverage will be effective Jan. 1, 2014.

In all, more than 30 million uninsured people are expected to gain coverage under the law. About half will get private insurance through the exchanges, with most receiving government help to pay premiums.

The rest, mainly low-income adults without children at home, will be covered through an expansion of Medicaid. While the federal government will pay virtually all the additional Medicaid costs, the Supreme Court gave states the leeway to opt out of the expansion. That adds to the uncertainty over how the law will be carried out.

A steadying force within the administration is likely to be HHS Secretary Kathleen Sebelius. The former Kansas governor has said she wants to stay until the law is fully enacted.

Governors will be the main counterparts to Sebelius, and Republicans are leading more than half the states.

Some, like Rick Perry of Texas and Rick Scott of Florida, have drawn a line against helping carry out Obama's law. In other states, voters have endorsed a hard stance. Missouri voters passed a ballot measure Tuesday that would prohibit establishment of a health insurance exchange unless the Legislature approves. State-level challenges to the federal law will continue to percolate.

Other GOP governors have been on the fence, awaiting the outcome of the election. All eyes will be on pragmatists like Chris Christie of New Jersey and Bob McDonnell of Virginia, whose states have done considerable planning to set up exchanges.

"Republican governors are at the center of the health care universe right now," said Michael Ramlet, health policy director at the American Action Forum, a conservative think tank. "They do not have a uniform position."

Virginia's McDonnell, in a rebuff to the administration, said in an interview published Thursday his state would not set up its own exchange, defaulting to a federally run one. McDonnell left open the possibility Virginia might later change course.

Some governors whose states aren't ready to run exchanges are considering the administration's fallback offer to run the new markets through a partnership.

"The real question for Republican governors is: 'Are you going to let the feds come into your state?'" Ramlet said. "The question for the Obama administration is whether they are going to have more flexibility."

Major regulations are due shortly covering such issues as exchange operations, benefits and protections for people with pre-existing health problems. That could signal the administration's willingness to compromise.

A check by The Associated Press found 17 states and the District of Columbia on track to setting up their own exchanges, while 10 have decided not to do so. The federal government could end up running the show in half or more of the states.

The states on track include California, Colorado, Connecticut, Hawaii, Kentucky, Maryland, Massachusetts, Minnesota, Mississippi, Nevada, New York, Oregon, Rhode Island, Utah, Vermont, Washington, and West Virginia.

Not setting up exchanges are Alaska, Florida, Louisiana, Maine, New Hampshire, South Carolina, South Dakota, Texas, Virginia, and Wisconsin. Missouri and others are likely to join the list.

A recent AP poll found that 63 percent of Americans want states to run the exchanges, with 32 percent favoring federal control.

GOP governors are also seeking flexibility on expanding Medicaid. They are pressing Sebelius on whether the administration will approve partial, less costly expansions, more attractive to cash-pressed states.

As far as Medicaid, 11 states and the District of Columbia have indicated they will expand their programs, while six have said they will not. That leaves more than 30 undecided.

The states definitely expanding Medicaid include California, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New York, Vermont, and Washington. Those declining include Florida, Georgia, Louisiana, Mississippi, South Carolina, and Texas.

On Capitol Hill, Republicans say if a budget deal is going to include tax increases, it must also come with cuts to the health care law, or money-saving delays in its implementation.

While major changes can't be ruled out, they don't seem very likely to former Senate Majority Leader Tom Daschle, D-S.D., who is close to the administration.

"I think Democrats are increasingly emboldened about the health care act," Daschle said. "The president won re-election partly by defending it. There is a new dynamic around the health care effort."

Republican attempts to amend the law will continue, he said, but outright repeal is no longer a possibility.

Speaker Boehner seemed to second that in an interview with ABC News. Asked if he will make another attempt to fully repeal Obama's law, he said "the election changes that."

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Loughner gets life for deadly Ariz. rampage

TUCSON, Ariz. (AP) — Former Congresswoman Gabrielle Giffords, partially blind, her right arm paralyzed and limp, came face to face Thursday with the man who tried to kill her last year, standing beside her husband as he spoke of her struggles to recover from being shot in the head.

"Her life has been forever changed. Plans she had for our family and her career have been immeasurably altered," said astronaut Mark Kelly, both he and his wife staring at the shooter inside a packed courtroom. "Every day is a continuous struggle to do those things she once was so good at."

Jared Lee Loughner, 24, was then ordered to serve seven consecutive life sentences, plus 140 years in federal prison for the January 2011 shooting rampage that killed six people and wounded 13 others, including Giffords, outside a grocery store in Tucson, Ariz.

Loughner pleaded guilty under an agreement that guarantees he will spend the rest of his life in prison without the possibility of parole. He avoids a federal death sentence, and local prosecutors said Thursday they would not seek state charges.

One by one, survivors of the attack at a Giffords political event approached the courtroom podium to address Loughner, each turning toward him where he sat stoic and emotionless at a table with his attorneys.

"You took away my life, my love and my reason for living," said Mavanell Stoddard, who was shot three times and cradled her dying husband in her arms as he lay bleeding on the sidewalk after shielding her from the spray of bullets.

Susan Hileman, who was shot, spoke to him, at times visibly shaking.

"We've been told about your demons, about the illness that skewed your thinking," she said. "Your parents, your schools, your community, they all failed you.

"It's all true," Hileman said. "It's not enough."

"You pointed a weapon and shot me three times," she said, staring directly at Loughner. He looked back at her. "And now I will walk out of this courtroom and into the rest of my life and I won't think of you again."

Loughner's parents sat nearby, his mother sobbing.

Some victims, including Giffords, welcomed the plea deal as a way to move on. It spared them and their families from having to go through a potentially lengthy and traumatic trial and locks up the defendant for life.

Giffords didn't speak, but stood by Kelly and kissed her husband when he was done. He grabbed her hand and they walked away, her limping.

Earlier, Loughner told Burns that he would not speak at the hearing.

Both sides reached the deal after a judge declared that Loughner was able to understand the charges against him. After the shooting, he was diagnosed with schizophrenia and underwent forcible psychotropic drug treatments.

Christina Pietz, the court-appointed psychologist who treated Loughner, had warned that although Loughner was competent to plead guilty, he remained severely mentally ill and his condition could deteriorate under the stress of a trial.

When Loughner first arrived at a Missouri prison facility for treatment, he was convinced Giffords was dead, even though he was shown a video of the shooting. He eventually realized she was alive after he was forcibly medicated.

Pima County Attorney Barbara LaWall said she reached out to family members, victims and survivors and decided against filing charges and seeking the death penalty.

It's unclear where Loughner will be sent to serve his federal sentence. He could return to a prison medical facility like the one in Springfield, Mo., where he's been treated for more than a year. Or he could end up in a prison such as the federal lockup in Florence, Colo., which houses some of the country's most notorious criminals, including Oklahoma City bombing conspirator Terry Nichols and "Unabomber" Ted Kaczynski.

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China's power transfer: infighting and spectacle

BEIJING (AP) — China's ruling Communist Party opens a congress Thursday to usher in a new group of younger leaders faced with the challenging tasks of righting a flagging economy and meeting public calls for better government.

The weeklong congress is the start of a carefully choreographed but still fraught power transfer in which President Hu Jintao and most of the senior leadership will begin to relinquish office. Vice President Xi Jinping, the anointed heir for the past five years, came a step closer to power Wednesday, being named the congress' secretary-general at a preparatory meeting.

Meeting in the Great Hall of the People, the congress seems drawn from another time. It's a public gathering of 2,268 delegates drawn from the 82 million-member party where the real deal-making is done by a few dozen power-brokers behind the scenes, even as China is ever more connected to the world through trade and the Internet.

Coming so soon after the U.S. presidential election climaxed with President Barack Obama's re-election, the congress has drawn unfavorable comparisons from politically minded Chinese.

"I am doing nothing but staring at the television before Obama gets re-elected. As for China's party congress, there is no need for me to worry. On the contrary, it would be a waste of my time," Xu Xiaoping, a celebrity entrepreneur who co-founded a successful chain of English cram schools, said on a Chinese version of Twitter where he has 6 million followers.

To many Chinese, China is at an inflection point. Its old model of heavily state-directed growth that lifted hundreds of millions out of poverty and made China an economic powerhouse is sputtering in the face of rising domestic debt and a weak global economy. Meanwhile, the government has to contend with the public's continued expectations of higher living standards and for less corruption and greater accountability, if not outright democracy.

Whether the new leaders want to move China in a new direction is not known. Xi and other top candidates for the new leadership have forged their careers as capable administrators in provinces and bureaucracies, not as policy trail-blazers. Should ambitious change be on their agenda, they will have to confront vested interests within their ranks: cosseted state industries and conservative officials grown prosperous and powerful under the current system.

One thing the party appears to be ruling out is a major shift toward a more open, democratic political system, despite appeals in recent months from commentators, retired party members and government think tanks.

"The leading position of the Communist Party in China is a decision made by history and by the people," congress spokesman Cai Mingzhao told reporters on Wednesday. He pointed to China's rise as an economic power and said, "It speaks fully to the strong leadership of the Chinese Communist Party and the fact that the political system suits China's national reality."

The congress itself is unlikely to give Xi and his colleagues a mandate for sweeping reform. They have been engaged with Hu, retired party elders and influential senior politicians and military commanders in divisive bargaining, made worse by a pair of scandals. Politburo member Bo Xilai was purged after an aide disclosed that Bo's wife had murdered a British businessman. One of Hu's top lieutenants was also sidelined after his son died crashing a Ferrari, a sign of corruption.

A likely result of the back-and-forth is a leadership that balances interest groups, and over the past decade that has been a recipe for plodding, incremental policy.

The centerpiece of the congress opening, a lengthy speech by Hu, is an uncertain indicator of where the new leadership wants to take China. In the early decades of reform, such speeches provided ideological cover as the party tried to break away from the dogma of central planning and experiment with freer markets. More recently, the documents have become ways for past leaders to constrain their heirs by stressing continuity.

In a preview of the speech given to senior officials in July and excerpted and analyzed in state media, Hu stressed the economy remains key. He said getting growth back to a relatively high rate remained crucial to meeting demands from the public — most clearly evidenced by large-scale strikes and protests, or what he called "contradictions."

Cai, the congress spokesman, ticked off a list of what Hu's team had accomplished — wider access to state-supported education through the ninth grade, an expanded social safety net and the start of a nationwide low-cost housing sector.

"The past decade has witnessed the greatest improvement in people's livelihoods in the history of China's development," Cui said. "We will make guaranteeing and improving the people's well-being the guide and aim of what we do."

___

Associated Press writers Gillian Wong, Christopher Bodeen and Didi Tang contributed to this report.

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Apple slides to five-month low, uncertainty grows

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Mom of 'Modern Family' teen star accused of abuse

LOS ANGELES (AP) — The mother of "Modern Family" star Ariel Winter has temporarily lost custody of the actress amid allegations she's been abusive to the teenager.

Court records claim Winter's mother, Chrisoula Workman, has been physically and emotionally abusive to her 14-year-old daughter, who plays Alex Dunphy on the hit ABC comedy.

The October order, first reported Wednesday by celebrity website TMZ, requires Workman to stay away from Winter until a Nov. 20 hearing. Records show Winter's sister filed for guardianship and was appointed her temporary guardian, but will not have access to her earnings.

The records describe Workman's abuse as consisting of slapping and name-calling.

Reached by phone, Workman said she was in the process of hiring an attorney.

Winter has appeared in films and TV shows since she was 7.

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Experts raise concerns over superhuman workplace

LONDON (AP) — Performance-boosting drugs, powered prostheses and wearable computers are coming to an office near you — but experts warned in a new report Wednesday that too little thought has been given to the implications of a superhuman workplace.

Academics from Britain's leading institutions say attention needs to be focused on the consequences of technology which may one day allow — or compel — humans to work better, longer and harder. Here's their list of upgrades that might make their way to campuses and cubicles in the next decade:

BRAIN BOOSTERS

Barbara Sahakian, a Cambridge neuropsychology professor, cited research suggesting that 16 percent of U.S. students already use "cognitive enhancers" such as Ritalin to help them handle their course loads. Pilots have long used amphetamines to stay alert. And at least one study has suggested that the drug modafinil could help reduce the number of accidents experienced by shift workers.

But bioethicist Jackie Leach Scully of northern England's Newcastle University worries that the use of such drugs might focus on worker productivity over personal well-being.

"Being more alert for longer doesn't mean that you'll be less stressed by the job," she said. "It means that you'll be exposed to that stress for longer and be more awake while doing it."

WEARABLE COMPUTERS

The researchers also noted so-called "life-logging" devices like Nike Inc.'s distance-tracking shoes or wearable computers such as the eyeglasses being developed by Google Inc. The shoes can record your every step; the eyeglasses everything you see. Nigel Shadbolt, an expert in artificial Intelligence at southern England's University of Southampton, said such devices were as little as 15 years away from being able to record every sight, noise and movement over an entire human life.

So do you accept if your boss gives you one?

"What does that mean for employee accountability?" Shadbolt asked.

BIONIC LIMBS — AND BEYOND

The report also noted bionic limbs like the one used this week by amputee Zac Vawter to climb Chicago's Willis Tower or exoskeletons like the one used earlier this year by partially paralyzed London Marathon participant Claire Lomas. It also touched on the development of therapies aimed at sharpening eyesight or cochlear implants meant to enhance hearing.

Scully said any technology that could help disabled people re-enter the workforce should be welcomed but society needs to keep an eye out for unintended consequences.

"One of the things that we know about technology hitting society is that most of the consequences were not predicted ahead of time and a lot of things that we worry about ahead of time turn out not to be problems at all," she said. "We have very little idea of how these technologies will pan out."

THE PRESSURIZED WORKPLACE

The report was drawn up by scientists from The Academy of Medical Sciences, the British Academy, the Royal Academy of Engineering and the Royal Society.

"We're not talking science fiction here," said Genevra Richardson, the King's College law professor who oversaw the report. "These technologies could influence our ability to learn or perform tasks, they could influence our motivation, they could enable us to work in more extreme conditions or in old age, or they could facilitate our return to work after illness or disability .... Their use at work also raises serious ethical, political and economic questions."

Scully said workers may come under pressure to try a new memory-boosting drug or buy the latest wearable computer.

"In the context of a highly pressurized work environment, how free is the choice not to adopt such technologies?" she said.

Union representatives appeared taken aback by some of the experts' predictions. One expressed particular disquiet at the possibility raised by the report that long-distance truck drivers might be asked to take alertness drugs for safety reasons.

"We would be very, very against anything like that," said James Bower, a spokesman for Britain's United Road Transport Union. "We can't have a situation where a driver is told by his boss that he needs to put something in his body."

___

Online:

The report: http://royalsociety.org/policy/projects/human-enhancement

Raphael Satter can be reached on: http://raphae.li/twitter

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Boehner: House GOP will work with Obama

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China hauls away activists in congress crackdown

BEIJING (AP) — During her 30-hour train journey to Beijing, Wang Xiulan ducked into bathrooms whenever the conductors checked IDs. Later, as she lay low in the outskirts of the capital, unidentified men caught her in a nighttime raid and hauled her to a police station. She assumed a fake identity to get away, and is now in hiding again.

Wang's not a criminal. She's a petitioner.

She's among many people attempting to bring local complaints directly to the central government in an age-old Chinese tradition that has continued during the Communist Party era. But police never make that easy, and this week, as an all-important leadership transition begins, a dragnet is aimed at keeping anyone perceived as a threat or a troublemaker out of Beijing.

"There is no law in China, especially for us petitioners and ordinary folk," Wang, 50, said in an interview with The Associated Press. "Even common gangsters and hoodlums get to leave after they serve time for crimes, but for us, if we get locked up, we never know when we might be freed."

Authorities want no surprises as the handover of power begins in the capital Thursday. The transition already has been rocked by the party's messiest scandal in decades, involving a former high-flying politician now accused of engaging in graft and obstructing the investigation into his wife's murder of a British businessman.

Rights groups say the wide-ranging crackdown on critics bodes poorly for those who hope the incoming generation of leaders will loosen restrictions on activism.

"China's top political leaders are very nervous, as they have since early this year been consumed by one of the most destabilizing and disharmonious power struggles in decades," said Renee Xia, international director of the Chinese Human Rights Defenders. The group estimates that hundreds or thousands of people have come under some kind of restriction in preparation for the party congress.

Lawyers have been held under illegal house arrest, dissidents sent back to their hometowns and activists questioned. Internet users report difficulties accessing many websites and the failure of software meant to bypass Internet filters.

Veteran activist Huang Qi, who runs a website on petitioners like Wang, said nearly 1,000 people have contacted him over the past few weeks to complain that authorities have hired thugs to harass and beat them.

"I hope that the Chinese authorities will face up to the social problems," Huang said in an interview. "Using violence will only escalate the resistance."

The crackdown reflects the leadership's nervousness as slowing economic growth exacerbates public outrage over corruption, social injustice, pollution and favoritism toward state-run agencies and the elite at the expense of ordinary people.

Under normal circumstances, petitioners are relatively safe once they reach Beijing's outskirts, though in their home provinces they are almost perpetually on the run from hostile local officials or thugs-for-hire who want to nab them before they can get an audience with central government agencies.

Now, however, even the capital's fringes are off limits.

Wang, a petite woman with shoulder-length hair neatly tied back, has been trying for two decades to draw central government attention to what she says was police mishandling of a serious assault she suffered in her native Harbin. Not only did her attacker go unpunished, but Wang ended up getting dismissed from her job years later.

Wang arrived in late October in Lu Village in Beijing's southwest, where petitioners have sought refuge for years. A police post guards the road into the village, and residents say officers have lately blocked petitioners from entering.

Wang had rented a bed — a wooden plank on bricks — in a tiny concrete room shared with two others. A gang of two dozen men barged in one night at 11 p.m., demanded to see her ID, searched her belongings and grabbed her cellphone.

"I was scared to death when they suddenly barged in here," Wang said, pointing at the door, where the lock had just been replaced.

The men refused to identify themselves and bundled her into a minivan with other petitioners. At another stop, she saw a couple dragged into the vans in their pajamas, the woman wearing only one shoe.

All were taken to a police station in nearby Jiujingzhuang village, where many petitioners say police process them for return to their hometowns. Using someone else's identity, Wang was able to evade police suspicion and was released. Many of the others were sent back, she said.

The raids are having an effect. The compound that houses her room and others now has only a handful of residents, down from about 30.

"They've all been chased away, caught or scared home," said Liu Zhifa, a 67-year-old petitioner from Henan province and one of the holdouts. Liu confirmed Wang's description of the Oct. 31 raid and described his own encounter with thugs breaking his lock and entering his room three times in one night in mid-October.

"I asked them to show their identifications, and they yelled at me, saying 'What right do you have to see our identification? Who do you think you are?" said Liu. "They were ruthless. The authorities and the police are working with people in the underworld."

A police officer who would only give his surname, Wei, answered the phone at a Jiujingzhuang police station (not 'the' because the police station has another name) and denied that authorities were raiding petitioners' villages. "We only act according to the law," Wei said. Questions about the broader crackdown were referred to the Beijing public security bureau, which did not respond to faxed questions.

The crackdown has extended to lawyers such as Xu Zhiyong. He said Beijing authorities have held him under informal house arrest since mid-October, stationing four or five guards outside his apartment in Beijing around the clock.

Xu has campaigned for years against Chinese authorities' use of "black jails," or unofficial detention centers run by local governments to hold petitioners. The government has denied the existence of such facilities, but even the tightly controlled state media have reported on them.

"The illegal restriction of a citizen's personal freedom for a long period of time is criminal behavior," Xu wrote in an email. "In an authoritarian state, this type of crime takes place everywhere."

Authorities in Shanghai also have ratcheted up pressure on critics, sentencing veteran women's rights activist Mao Hengfeng to a year and a half of labor camp. Mao, accused of disturbing social order, had been detained in Beijing in late September, said her husband, Wu Xuewei, who indicated she was being put away to silence her before the party congress.

Even dissidents' relatives have come under pressure. Beijing activist Hu Jia said he was warned by police to leave town, and that even his parents told him that police had told them to escort him to his hometown.

"My parents said to me: 'Hu Jia, you don't know what kind of danger you are in, but we know,'" he recounted in a phone interview from his parents' home in eastern Anhui province. "They said: 'Beijing is a cruel battlefield. If you stay here, you will be the first to be sacrificed. Don't do this.'"

___

Follow Gillian Wong on Twitter at twitter.com/gillianwong

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Exclusive: Amazon to win e-book tussle with Apple

BRUSSELS (Reuters) - European Union regulators are to end an antitrust probe into e-book prices by accepting an offer by Apple and four publishers to ease price restrictions on Amazon, two sources said on Tuesday.

That decision would hand online retailer Amazon a victory in its attempt to sell e-books cheaper than rivals in the fast-growing market publishers hope will boost revenue and increase customer numbers.

"Faced with years of court battles and uncertainty I can understand why some of these guys decided to fold their cards and take the whipping," said Mark Coker, founder of Smashwords, an ebook publisher and distributor that works with Apple.

"It's certainly another win for Amazon," he added. "I have not seen the terms of the final settlement, but my initial reaction is that it places restrictions on what publishers can do, slowing them down just when they need to be more nimble."

A spokesman at the EU Commission said its investigation was not yet finished. Amazon and Apple declined to comment.

In September, Apple and the publishers offered to let retailers set prices or discounts for a period of two years, and also to suspend "most-favored nation" contracts for five years.

Such clauses bar Simon & Schuster, News Corp. unit HarperCollins, Lagardere SCA's Hachette Livre and Verlagsgruppe Georg von Holtzbrinck, the owner of German company Macmillan, from making deals with rival retailers to sell e-books more cheaply than Apple.

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.

Pearson Plc's Penguin group, which is also under investigation, did not take part in the offer.

The EU antitrust authority, which in September asked for feedback from rivals and consumers about the proposal, has not asked for more concessions, said one of sources.

"The Commission is likely to accept the offer and announce its decision next month," the source said on Tuesday.

Antoine Colombani, spokesman for competition policy at the European Commission, said: "We have launched a market test in September and our investigation is still ongoing."

Amazon declined to comment, while Apple did not respond to an email seeking comment.

Companies found guilty of breaching EU rules could be fined up to 10 percent of their global sales, which in Apple's case could reach $15.6 billion, based on its 2012 fiscal year.

AGGREGATE PRICING

UBS analysts estimate that e-books account for about 30 percent of the U.S. book market and 20 percent of sales in Britain but are minuscule elsewhere. When Amazon launched its Kindle e-reader, it charged $9.99 per book.

Apple's agency model let publishers set prices in return for a 30 percent cut to the maker of iPhone and iPad.

The U.S. Department of Justice is investigating e-book prices. HarperCollins, Simon & Schuster and Hachette have settled, but Apple, Pengin Group and Macmillan have not.

The DOJ settlement required that retailers must at least break even selling all ebooks from a publisher's available list, according to Coker and Joe Wikert, general manager and publisher at O'Reilly Media Inc.

It was not clear if EU regulators will include a similar requirement, which would prohibit Amazon from pricing all ebooks at a loss, said Wikert, a former publishing executive.

In the United States, Amazon will likely price popular titles at a loss and try to make up the difference on a publisher's other ebooks, he said.

Coker said any such rule could be dangerous in Europe, which still has distinct markets.

"It could allow a single retailer to charge full price in a large market like the U.K., and then sell below cost or for free in multiple smaller markets as a strategy to kill regional ebook retailing upstarts before they take root," Coker said.

FROWNING ON ONLINE TRADE CURBS

Antitrust regulators tend to frown on restrictions on online trade and the case is a good example, said Mark Tricker, a partner at Brussels-based law firm Norton Rose.

"This case shows the online world continues to be a major focus for the Commission," he said.

"These markets change very quickly and if you don't stamp down on potential infringements of competition rules, you can have significant consequences."

(Additional reporting by Alistair Barr in San Francisco; Editing by Rex Merrifield, David Goodman and David Gregorio)

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