Two publishing industry groups, the Authors Guild and the Association of American Publishers, are objecting to the online retailer’s request for ownership of new top-level domain names that are part of a long-awaited expansion of the Web’s addressing scheme. They argue that giving Amazon control over such addresses — which include “.book,” “.author” and “.read” — would be a threat to competition and shouldn’t be allowed.

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The drawn-out process is particularly troubling for some that are hoping to launch games or other applications in time for the holidays to take advantage of higher-than-usual phone and tablet sales. “It’s been a nightmare. It’s worse than it’s ever been,” said one developer, who spoke to AllThingsD on the condition of anonymity.

The same developer said Apple has been warning app makers over the phone that based on expected volumes, it could take up to three weeks to get an app approved. Additionally, if developers want to ensure that apps are approved before the New Year, it’s recommended that they submit them by Thanksgiving — only two weeks away.

Apple sent out a letter to developers today, reminding them that the company will not be processing any requests for one week this winter as part of its practice to shut down operations during the winter holidays. The shutdown this year will run from Dec. 21 to Dec. 28. An Apple spokesperson declined to comment.

While it is hard to gauge exactly what is normal since the approval process largely depends on the publisher’s circumstances, a rule of thumb is that Apple approves apps within 10 to 14 days. The new timelines being shared with some developers are likely presenting the worst-case scenario, with some occurring much faster. According to Apple’s developer portal, 84 percent of new apps and 95 percent of updates have been reviewed in the past eight business days (although those numbers have not been updated since Oct. 15).

A third-party service, called Shiny Development, attempts to track the wait times independently and is reporting an average wait time of nine days. It’s unclear how accurate that data is since it is based on developers self-reporting their times on Twitter. In the meantime, Shiny Development also reports that the Mac App Store wait times are an average of 19 days. Many believe that Apple has shifted resources from the Mac store to the iOS store to help with increased demand on the mobile front, resulting in longer delays for the Mac.

Apple’s week-long vacation always leads to longer approval processes around the holidays, but this year a number of developers are saying that timeframes increased earlier than normal — for obvious reasons. Developers have been busy creating new applications for the iPhone 5, which has a larger display. The iPad mini may also increase submissions as developers choose to tailor their iPad apps for a smaller display. Finally, developers must also update their apps to support new features in iOS 6, including Passbook, Apple’s new maps and Facebook integration.

Apple has been criticized for a slow approval process before, and many delight in the fact that Google’s Android has none at all. To be sure, it seems that the times once promised by Apple have slipped in recent years. In June 2010, Steve Jobs told developers that 95 percent of all apps submitted were being approved within seven days.

Now it’s not only consumers who are willing to stand in line to get their hands on the latest hardware; developers are eager to get their turn, too.

The approval follows a consent last week given by the judge to a separate but related federal antitrust settlement involving similar allegations.

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The approval comes as Apple Inc. and two other publishers are preparing to defend themselves next June over antitrust allegations by the U.S. Department of Justice that they agreed to keep e-book prices artificially high in an effort to force Amazon.com Inc. to stop its steep discounting.

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The suit will restore Amazon to the dominant position atop the e-books market it occupied for years before competition arrived in the form of Apple. If that happens, consumers will be forced to accept whatever prices Amazon sets.

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And it’s about time. Amazon was rumored to be prepping a Kindle for the Japanese market last year, but that effort was hamstrung by Japanese publishers reluctant to provide content to Amazon, fearing the company would sell it at too much of a discount, potentially undermining both the digital and dead-tree sides of their business.

Evidently Amazon has since disabused them of that notion. The Asahi Shimbun reported in April that Amazon had struck deals with a number of smaller Japanese publishing houses, and was working hard to sign similar agreements with their larger brethren. Presumably, the company has now inked enough deals with key Japanese publishers to move forward with a launch.

(Image courtesy of Flickr/Kodomut)

As part of the deal, a French author association that had been suing Google for copyright infringement said it had agreed to withdraw its lawsuit, the last such pending suit in France after other publishers withdrew theirs last year.

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With those words, senior Apple executive Eddy Cue stuck to his take-it-or-leave-it business model of a 30 percent revenue share payable for transactions through the iTunes service. Despite my arguments to Mr. Cue in Apple’s Cupertino, Calif., offices last year on behalf of news publishers seeking different terms, to him there was no difference between a newspaper and an online game.

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The difference is that at Lufkin’s last job, running the home page for Yahoo, she helped shape the daily media diet for hundreds of millions of people a month. Now she’s chief content officer at Trapit, a recently launched news aggregator that attracts some 25,000 visitors a day.

Trapit is tiny, but the real challenge for Lufkin and the start-up isn’t the company’s size. It’s the competition: There are roughly one gazillion services that say they will filter the Internet’s endless waves of stories into something personalized and manageable. Some, like Google news, use unfathomable algorithms; others, like News.me, say they do it using social cues from your Twitter and Facebook feeds.

Trapit’s pitch, essentially, is that it does a better job than the rest because it is built on the bones of a DARPA-funded artificial technology project. It says it isn’t interested in the social Web but the real-time Web, and in the way individual users respond to the stories it serves up, so it can get better at predicting their tastes over time.

I don’t have any way to vet those claims based on my brief demos of the site (above, the top results for “greek yogurt,” in case Dick Costolo is interested). But I can note that hiring Lufkin to help sort and display content is an acknowledgment that even the smartest computers need an assist or two.

In addition to her editorial work, Lufkin is also supposed to help Trapit build a business. Right now, the company simply points users to publishers’ original stories (surrounded by a framebar) and there’s no revenue in that. But Lufkin and Amra Tareen, the site’s new biz dev head, are supposed to go out and create partnerships with publishers so that Trapit could help them sell subscriptions or a la carte articles.

It’d be great if they could get a couple of those deals hammered out in the next month or so, when Trapit’s new iPad app is supposed to launch. But Lufkin and Tareen just started at Trapit this month, and if you’re betting on publishers to move quickly, you’ll lose lots of money, fast. Best to give this one some time.

The lawsuit, filed in Manhattan federal court by the U.S. Department of Justice’s Antitrust Division, alleges Apple and the publishers reached an agreement where retail price competition would cease, retail e-books prices would increase significantly and Apple would be guarantee a 30% “commission” on each e-book sold.

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As part of the announcement, the retailer is also confirming that it will take a 30 percent cut of each transaction, which is the standard across Apple’s App Store, Facebook and Google Play (Correction: In an earlier version, it stated that Google takes 5 percent, which only applies to the Google+ game network.)

The announcement is not a huge surprise, since Amazon has been testing in-app payments over the past few months with a number of developers in the Amazon Appstore, which runs on the Kindle Fire and a number of Android handsets.

The payments platform utilizes Amazon’s well-recognized and trusted “1-Click” purchasing experience that so many consumers are familiar with from shopping online. By bringing it to mobile, it will make it easy for consumers to purchase a few more coins inside a game or to subscribe to a magazine.

But while the announcement sounds fairly basic, the rollout is important for Amazon to get right, since developers’ initial reception to the Appstore was a little strained — and stories of making money on the platform have been mixed.

That’s because, unlike other app stores, Amazon has decided to dictate how much an app sells for, and in some cases, the company elects to make apps free as part of its Free App of the Day promotion. In doing so, developers sometimes make less revenue than they would normally expect (especially since there was no potential upside from in-app purchases).

Developers and publishers will be able to set the price of the items within the store, including virtual goods or subscriptions, an Amazon spokesperson said.

Based on developers that participated in the beta tests, so far Amazon’s Appstore looks like it has been monetizing well.

Storm8, which was one of the game developers that participated in the beta test, told AllThingsD that it generated $700,000 in revenue from in-app purchases in March — before Amazon’s cut. The Redwood City developer said it has 10 free-to-play apps in the store, including such titles as Kingdoms Live, Nightclub Story and Farm Story; at one point, four of its games ranked among the five most popular free apps on Amazon.

Flurry, which provides analytics software to developers, also estimated  that Amazon’s in-app payment platform monetizes well, and that it outperforms Google Play, but falls short of the industry’s gold standard, which is Apple.

Still, it’s unclear whether Amazon will be able to woo developers, given that it is so much smaller than the other players. Last month, after celebrating its first year in business, Amazon confirmed that it had more than 31,000 apps in its store, which is far fewer than either Google or Apple.

It’s also unclear how many devices the Appstore is installed on, since Amazon does not share much information, including how many Kindle Fires it has sold.

According to a report by IHS iSuppli, Amazon shipped 3.9 million Fires in the fourth quarter, to claim 14.3 percent of the market. That makes it the world’s second-largest tablet vendor, surpassing Samsung, which has been in the market far longer, with many more devices.

In the future, what could potentially be even more interesting for developers than in-app payments is if Amazon will let them use apps to sell merchandise, such as Rovio’s plush toys, or DVDs and other cross-promotional items.

An Amazon spokesperson declined to comment on the possibility.

Apple Inc., another target of the investigation, and two publishers appear reluctant to settle on the terms sought by antitrust authorities in both the U.S. and Europe, those people said.

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Several of the parties have held talks to settle the antitrust case and head off a potentially damaging court battle, these people said. If successful, such a settlement could have wide-ranging repercussions for the industry, potentially leading to cheaper e-books for consumers. However, not every publisher is in settlement discussions.

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The numbers of readers signing up so far suggest that at many papers, “paywalls” aren’t about to reverse publishers’ deteriorating finances. Yet the results aren’t discouraging industry executives, who say their efforts are succeeding in shoring up the core print business after years of declines.

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9:34 am: We’ve arrived. Here’s the scene outside the Guggenheim Museum.

9:43 am: As we wait for the event to get started, here are some “CliffsNotes” on what we might see from Apple today.

9:45 am: Hi there, from Peter! Lauren Goode and I, along with a couple hundred other people, are still stuck in the stairwell of the museum, waiting to be seated.

9:50 am: Line is moving slowly now.

9:52 am: Hello there. Apple has let us into the Guggenheim’s basement auditorium.

Just spotted McGraw-Hill CEO Terry McGraw in the audience. Not sure if he’s sitting with us, or will be popping up onstage.

9:54 am: Ah. I see that the American corporate mandate to play Adele at every event has continued into 2012. So we are still rolling in the deep.

We could have had it all, you know.

9:57 am: Lights down. Adele still belting.

9:58 am: First up: Apple marketing head Phil Schiller.

“Education is deep in our DNA, and it has been from the very beginning.”

Apple has a unique understanding of learning, student achievement. “We’re so proud to take part in anything we can do to help students learn.”

New change in schools via iPad is “profound and remarkable.”

Shot of toddler watching Dora on iPad, which looks very familiar.

But education has challenges, “which are pretty profound.”

Life is tough for high school kids in the U.S. Freshmen have a 70 percent chance of graduating. In “hard-hit urban areas,” that’s 60 percent.

Even if you do graduate, you probably won’t be prepared to compete internationally. List of poor showing by U.S. in world education rankings.

Now a video reel of teachers bemoaning the state of affairs, backed up by swelling music track.

Basic message: Schools are in lousy shape. “We need a reset. We need a way to find out what’s wrong, and fix it,” says last teacher, in a nice sweater.

Schiller is back. “No one person or company can try to fix it all.” But Apple can help. Specifically with “student engagement.”

Of course, kids like iPads, Schiller says. Extolls virtues of iPad, which we don’t need to tell you about here. “Affordable, not only for families but for schools.”

20,000+ education apps built specifically for iPad.

And lots of iBooks would work very nicely in schools, too.

1.5 million iPads in use in “education institutions.” We want to accelerate that. So we’re announcing two initiatives:

10:06 am: 1) “Reinventing textbooks.”

Books are awesome. They’ve transformed society and will always be with us. But they’re not an ideal learning tool for kids. Cumbersome, get dog-eared, “written-in, worn, just not the ideal teaching tool.” Image of badly-beaten book.

Books aren’t portable enough. Not durable enough. Not interactive. Not searchable. Can’t be updated. “The content is great,” though.

10:07 am: But the iPad? That’s awesome. It’s all of those things that a lowly book is not.

But “can you get amazing content turned into a new generation of digital books?”

10:08 am: So here is iBooks 2 — a “new textbook experience for the iPad.”

“These are beautiful books.” Here’s a demo, with Roger Rosner, who has helped build the new product.

Biologist E.O. Wilson introduces a new digital textbook, which features multitouch, video, navigation via thumbnails, etc. “These are gorgeous, gorgeous books. They’re really in a class by themselves.”

“Clearly, no printed textbook could compete with this.”

Lots of pinchy-zoomy. “Again, nothing like that on the printed page.”

So here I will point out that the most obvious issue is the same one that magazine publishers faced during the initial iPad launch — someone needs to figure out how to pay for a system where you can build all this new cool digital stuff, while you continue to publish your old paper-and-ink products. After some initial experiments, most magazine guys have retreated to more or less republishing the existing product, with a few bells and whistles.

Okay, back to Rosner, still demoing cool stuff like interactive text that lets you access a glossary by highlighting a word. “That is so much better than a paper glossary could ever hope to be.”

10:14 am: Hopefully, the pictures that Lauren Goode is taking give you a good idea of what Rosner is showing off. This stuff does look gorgeous, of course.

Half the crowd applauds.

10:15 am: Still demoing. Quizzes and review questions built into book. “The bottom line is immediate feedback.”

Can highlight text with finger, change color, etc. Add notes.

10:17 am: Turn notes into study cards. Can turn glossary terms into study cards. “No more ever having to make paper flash cards, right?”

More applause for card demo. “I don’t think there’s a textbook that’s ever made it this easy to be a good student.”

New textbook category in iBookstore.

10:20 am: Demo over, Schiller back up. Summarizes selling points.

10:20 am: Now on to creation. “That’s just as important.”

iBooks Author (i.e., what people have been calling “GarageBand for books”).

“Easy to use, feature-rich,” will work for any kind of book, not just textbooks. But “focused most of all” on textbooks.

10:21 am: Rosner back up. “Traditionally, creating electronic interactive books has been really hard.” We can fix that.

Uses some familiar iWork workflow. Drag and drop. Can type into editor or bring in Word files, etc.

More applause after program reformats and flows Word doc.

This looks very slick and easy. No surprise there.

Ah. I can now see that McGraw-Hill CEO Terry McGraw is in the audience, soaking it in with the rest of us.

Can integrate Keynote into text. More applause for that.

Rosner still demoing. If you’ve ever been involved in making e-books before, “you know that this is a total miracle in terms of time savings.”

More applause for fast turnaround between creation and working book showing up on iPad. “I just think that’s totally awesome, right? In just five minutes flat, we created a totally interactive book.”

More applause, and some excited hoots.

10:29 am: Schiller back. “Anyone can create stunning, interactive books.”

Authoring tools “often cost hundreds to thousands of dollars.” But we want to make sure that anyone can use this — even teachers. New iBooks Author will be free.

Available today on Mac App Store. More applause.

Reminder that iBookstore will have new textbooks category.

Partners (this is key part).

High school textbooks. Will launch at $14.99 or less.

Names of publishers? Have yet to hear from Schiller.

Here we go: “We have had some phenomenal companies really work with us”: Pearson, McGraw-Hill, Houghton Mifflin Harcourt. “They have been great partners with us.”

McGraw-Hill, for instance, wil be providing algebra, biology, chemistry books, etc. “They are incredible.”

“Can’t overemphasize” how important it is for publishers to work with us.

Also working with DK Publishing. Four new kids’ books.

Another partner: E.O Wilson Biodiversity Foundation. “If you don’t know E.O. Wilson, you should.” More applause.

First chapters of “Life on Earth” are available now, for free. Future chapters will be available at low price.

And now, a video. “We couldn’t help ourselves … I hope you enjoy it.”

More hopeful teachers and music this time out.

So while video is rolling, let’s review: By far the most important announcement today is that Apple has partnered with three of the big textbook publishers. Don’t have details on that, but the fact that this isn’t a flat-out end run around the textbook industry is crucial. Obvious parallel here is iTunes music launch in 2003, when Apple worked with the big labels instead.

Eddy Cue, who many of us thought would be at event, shows up in video, instead.

And Terry McGraw is in the video, as well.

So is Pearson CEO Marjorie Scardino.

John Deasy, superintendent for Los Angeles Unified School District.

10:44 am: Video over, more applause. Ah. Schiller has more. Here comes Eddy Cue.

10:45 am: As John Paczkowski noted early this month, Apple is overhauling iTunes U.

700 million downloads of iTunes U content in the last four years. So far, mostly used to download college lectures. (I’m responsible for one of them! A Robert Shiller talk I keep meaning to listen to.)

“We want to let teachers do a whole lot more.” Create entire classes online. Via all-new iTunes U app.

Jeff Robbin, VP of iTunes, for demo.

Not just books, but “new complete, online courses.” Here’s a chemistry course from Duke University.

Some of this is gunning at Blackboard, the college standard for online education software, which lots of people (users and would-be competitors) would like to disrupt.

Ability for teachers to post notes for students, download videos to iPad or stream, etc.

Demo over, more applause. Hard to explain/see how this will work unless you’re actively using it within the context of school, I think.

Cue rattles off list of colleges using iTunes U already. Six of them have used the new software — Duke, Stanford, Yale — and have created more than 100 courses already. “All of it for free.”

So far, mostly used for higher education. But now available for K-12. More applause.

10:54 am: Cue off, Schiller back.

Love of education “has been instilled in Apple since the very beginning. And it’s as true today as it ever was before.”

“We hope that educators will look back on today’s announcements just as fondly” as past Apple education initiatives.

“I hope you’re as excited about these announcements as we are.” Schiller finishes up, event over.

Thanks for tuning in. We’ll now get a chance to play with some of this stuff hands-on, and I’m going to talk to at least one of the publisher partners Apple talked about today. More in a bit.

At least it should be, based on the $35 million that investors just plowed into Outbrain, the content recommendation engine that works with AllThingsD and lots of other publishers. Index Ventures led the round, joining existing investors Carmel and Lightspeed; the New York-based company has raised $64 million to date.

Outbrain makes money helping funnel traffic from one publisher’s site to another. It gets paid whenever someone clicks on its sponsored listings (those are the ones labeled “From the Web” at the end of this story), and gives the originating publisher 60 percent of the revenue. Publishers (again, like AllThingsD) also benefit, because Outbrain provides recommendations for other stories that will keep readers on the original site.

Like most of the Web, this is a business that’s supposed to work at scale, and Outbrain says it has that now, generating 200 million clicks a month. Earlier this year, Outbrain bought former rival Sphere from AOL.

(Image courtesy of Shutterstock/The Bezz)

At a congressional hearing, Sharis Pozen, the Justice Department’s acting antitrust chief, said: “We are also investigating the electronic book industry, along with the European Commission and the states attorneys general.”

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The program will be limited, at least at the beginning, in what is available to borrow. Amazon will initially offer slightly more than 5,000 titles in the library, including more than 100 current and former national bestsellers, such as Stephen R. Covey’s “The 7 Habits of Highly Effective People.” None of the six largest publishers in the U.S. is participating.

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In March, Denny Chin, now a U.S. Circuit Judge in Manhattan, rejected a revised $125 million deal to resolve separate lawsuits over scanning books for online distribution by Google via its Google Books site. In his decision, the judge found the pact would give Google the ability to “exploit” books without the permission of copyright owners.

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It’s unclear how much traction the proposal has, the people said. Several publishing executives said they aren’t enthusiastic about the idea because they believe it could lower the value of books and because it could strain their relationships with other retailers that sell their books, they said.

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It’s a little bit like Groupon Now and LivingSocial Instant, which offer deals that can be redeemed immediately and are based on your location.

But the comparisons with the industry’s leaders and TownHog end there.

Lilia Martinez-Coburn, TownHog’s VP of product and marketing, explains that since getting into the business in late 2009, the company has shifted its focus away from building up a huge sales staff and competing one on one with the giants in the space.

Instead, it is offering the platform it built for its own deals to third-party publishers.

Today, its platform is being used by several companies, which already have the distribution and the sales force, including CBS Local Offers, OpenTable, Cumulus Broadcasting’s SweetJack.com, the San Francisco Chronicle’s SFGate and others.

TownHog’s consumer-facing site now primarily operates in San Francisco only, where it continues to help SFGate source deals.

This is the second time the company has shifted businesses. Previously, it was called DotBlu, a social games company that didn’t work out. But since the company still had some money left in the bank, it tried the daily deals business.

Many started to think TownHog was again on the downturn earlier this year, when it started scaling back the number of employees it had.

Martinez-Coburn explains it has been reducing the number of people on staff because it didn’t need as many salespeople, since its publishing partners were increasingly sourcing the deals directly. About a month ago, TownHog had 40 employees; today it has closer to 30.

“As our partners ramp up and are getting the hang of how to sell this, the hope is for them to take on the role and source their own deals,” she said.

Other companies providing white label platforms in the daily deals space include Tippr and Group Commerce.

TownHog’s mobile product, which it unveiled today, is called Express Offers. It will allow partners to quickly launch a standalone iPhone app to publish offers.

Unlike traditional deals that run for 24 hours and make you wait to redeem them, consumers will have the chance to purchase these offers immediately from the phone or online.

Going forward, Martinez-Coburn said she hopes that all offers on their network will be offered instantly because of the benefits to the consumer and the publisher.

Publishers gain the opportunity to run more than one offer at a time, instead of providing just one deal a day. In addition, Martinez-Coburn said, it will help with conversion rates. Right now, many publishing partners promote deals on the radio or in the paper, and when people see it or hear about it, they immediately want to go and get 50 percent.

When they realize they have to wait 24 hours, the conversion drops off.

Perhaps the biggest difference between the two platforms will be cost.

According to multiple sources, Google will take less than a 30 percent cut of the revenues, which will break the industry standard created over the past few years by both Facebook and Apple.

The launch of a games network on Google+ may provide a couple of immediate benefits to game developers if the Internet giant actually pulls everything off.

The obvious one is that it will give developers another outlet for its games. But the other perk is that it could provide a small way for developers to get back at Facebook after learning earlier this week that it has a complicated – if not favorable – relationship with Zynga, the industry leader.

More favorable terms, and that, could bring game developers flocking to Google.

I am also hearing that the game network will have significant technical differences. Two people described the platform as a “native client,” which means that Google will host the games on its own servers, rather than on the developer’s.

The expectation is that this could lead to faster game play for users, with shorter loading times and fewer bugs than in games found on Facebook.

A Google spokesperson declined to comment.

Last month, I reported that a games network was likely coming next on Google+.

At the time, a spokesperson issued this statement: “It’s important to keep in mind this is an ongoing project and this is just the beginning. We plan to add a lot of features and functionality to Google+ over time. We’re just excited to get started.”

Timing of the launch is still unknown; however, at Casual Connect this week in Seattle, publishers were buzzing (albeit quietly) about the upcoming launch. Everyone I spoke to was under the impression it was coming soon. One enthusiastic source said it will launch this month, while another said it was taking longer.

Details on the revenue split are also unknown, but there have been hints at what it could offer.

Two days ago, Google launched In-App Payments, which allow developers to integrate payments within any Web application, which is exactly the kind of technology it would need to monetize a social game network. What’s even more important is that Google disclosed it only charges five percent for the payments service.

There’s no evidence that in-app payments are connected, or if Google would ask for the same cut. But, at such a low starting point, it is probably not too far off the mark, since most of Google’s time and attention is focused on advertising.

So far, Google’s in-app payments are available to developers with a U.S. bank account, and work in more than 140 countries.

Of course, Google’s game network will not support developers without hundreds of millions of consumers to play the games.

So far it has delivered on that front, too.

Already, 10 million users have signed up for Google+, despite requiring an invitation. The user base has also been particularly active, sharing and receiving one billion items per day.

What Google’s network won’t be is a haven for developers who are seeking to get away from Zynga, which is larger than its next five competitors on Facebook combined.

Google is one of Zynga’s major investors.

But many of those same companies tend be much more optimistic about smartphones: The platforms seem manageable and finite, and consumers seem willing to pay for stuff on an iPhone or Android that they’d never shell out for on their laptops.

I think that conventional wisdom is overblown — more wishful than realistic. Still, it’s the conventional wisdom among many media executives I talk to.

Here’s a nice illustration of that, via a new Accenture survey. The consulting firm asked “130 leaders and decision-makers in the Media and Entertainment industry” about their digital content plans, and found a pretty strong consensus — they think consumers and dollars are going to flock to mobile in the next couple years.

What about the iPad and any other tablets? We’ll assume that the big media guys are including tablets in the “mobile/wireless” answer in the second poll question. But note that they’re clearly less enthusiastic about tablets, compared to phones, in the first question.

Accenture notes that if you carve up responses by industry, things change a bit. For instance, publishers who embraced the iPad (and the Kindle, and the Nook) from the get-go think that tablets will be the favorite device for 36 percent of their customers in the near future.