Tags: apple | ebooks | prices

Judge Says Apple Conspired to Raise Prices on E-Books

Wednesday, 10 Jul 2013 09:59 AM

 

In a decision that could reshape how books are sold on the Internet, a federal judge ruled that Apple Inc conspired to raise the retail prices of e-books in violation of antitrust law, and called for a trial on damages.

The decision by U.S. District Judge Denise Cote in Manhattan is a victory for the U.S. government and various states, which the judge said are entitled to injunctive relief.

Apple had been accused of colluding with five publishers to boost e-book prices beginning in late 2009, as the Silicon Valley giant was preparing to launch its popular iPad tablet.

The U.S. Department of Justice said this conspiracy was designed to undercut online retailer Amazon.com Inc's dominance of the fast-growing e-books market.

Only Apple went to trial, while the publishers - Lagardere SCA's Hachette Book Group Inc and Macmillan, News Corp's HarperCollins Publishers LLC, Pearson Plc's Penguin Group (USA) Inc and CBS Corp's Simon & Schuster Inc - settled with the U.S. government and the states.

Cote said the conspiracy resulted in prices for some e-books rising to $12.99 or $14.99, when Amazon had sold for $9.99.

"The plaintiffs have shown that the publisher defendants conspired with each other to eliminate retail price competition in order to raise e-book prices, and that Apple played a central role in facilitating and executing that conspiracy," Cote said.

"Without Apple's orchestration of this conspiracy, it would not have succeeded as it did in the spring of 2010," she added.

Apple did not immediately respond to a request for comment.

Cote issued her 159-page decision after a non-jury trial that ended on June 20.


© 2015 Thomson/Reuters. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

NBC News Renews Savannah Guthrie's Contract At 'Today' - Report

Sunday, 25 Jan 2015 22:41 PM

NBC News has signed Today co-anchor Savannah Guthrie to a new contract that is said to last at least three years, acco . . .

'Birdman' Tops SAG Awards, Redmayne Upsets Keaton

Sunday, 25 Jan 2015 22:05 PM

The backstage farce "Birdman" topped the 21st annual Screen Actors Guild Award, winning best ensemble cast, even though  . . .

Blizzard Expected for 250-mile Stretch of Northeast

Sunday, 25 Jan 2015 17:20 PM

A potentially historic storm could dump 2 to 3 feet of snow from northern New Jersey to southern Maine starting Monday . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved