The Justice Department and 33 state attorneys general want to force Apple to sign contracts with publishers that don't prevent Apple or other e-book stores from competing on price.
A federal judge ruled last month that Apple colluded with publishers to raise e-book prices. The Cupertino, Calif., company has vowed to appeal the decision.
On Friday, the Justice Department and the attorneys general submitted to the court their proposal to remedy Apple's conduct. They want Apple to tear up its contracts with five e-book publishers and sign new ones that aren't likely to increase prices.
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