Apple loses e-book price-fixing case, plans to appeal

News Wireless United States 11 JUL 2013
Apple loses e-book price-fixing case, plans to appeal

Apple has lost a case brought by the US government and 33 state attorneys general in April 2012 which accused the company of fixing the price of e-books with five publishers to compete against market leader Amazon. US District Judge Denise Cote ruled that Apple played a central role in the scheme.

In her judgement she wrote that the agency agreement shifted prices in the nascent e-book industry upwards, "in some cases 50 percent or more for an individual title. Virtually overnight, Apple got an attractive, additional feature for its iPad and a guaranteed new revenue stream, and the publisher defendants removed Amazon’s ability to price their e-books at USD 9.99". The publishers have already settled with the department of justice.

Bloomberg writes that Apple will be ordered to stop the practice and may have to pay treble damages for overcharging customers under the state government’s suits. The federal government is not seeking damages. Apple insisted that it did not conspire to fix e-book pricing and said it would appeal the decision.

Categories:

Mobile

Companies:

Apple,  Amazon

Countries:

United States

Tags:

Distribution - retail outlets, IT - applications, Consumer devices, Wireless, Consumer, Pricing, Legislation - Lawsuits

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