1 Updates
Judge rules Apple conspired to raise e-book prices
Photo Credit: Pete Marovich, Getty Images

Judge rules Apple conspired to raise e-book prices

Jul 11 2013, 1:24am CDT | by

New York, July 11 (IANS/EFE) A New York federal judge ruled Wednesday that Apple Inc. conspired with several publishing companies to raise the prices of e-books, but the technology giant announced it would appeal the decision.

New York, July 11 (IANS/EFE) A New York federal judge ruled Wednesday that Apple Inc. conspired with several publishing companies to raise the prices of e-books, but the technology giant announced it...

Filed under: news

Full Story below YouTube Videos

 
 

 

40 weeks ago

Judge rules Apple conspired to raise e-book prices

Jul 11 2013, 1:24am CDT | by

New York, July 11 (IANS/EFE) A New York federal judge ruled Wednesday that Apple Inc. conspired with several publishing companies to raise the prices of e-books, but the technology giant announced it would appeal the decision.

New York, July 11 (IANS/EFE) A New York federal judge ruled Wednesday that Apple Inc. conspired with several publishing companies to raise the prices of e-books, but the technology giant announced it would appeal the decision.

The ruling by US District Judge Denise Cote marked an important victory for Amazon.com, which once held a 90 percent market share by selling e-books at $9.99, a price many publishers considered too low.

The publishers charged in the case alongside Apple - Simon & Schuster, Hachette Book Group, Penguin Group, Macmillan and News HarperCollins - all settled with the US Department of Justice, which brought the anti-trust suit last year.

"Apple not only willingly joined the conspiracy, but also forcefully facilitated it," Cote said in her decision. "This price-fixing conspiracy would not have succeeded without the active facilitation and encouragement of Apple."

Immediately after the ruling was handed down, the California-based technology giant announced plans to appeal.

"Apple did not conspire to fix e-book pricing, and we will continue to fight against these false accusations," company spokesman Tom Neumayr said.

The Justice Department alleged that publishers colluded with Apple to artificially drive up the price of e-books and, in so doing, prevented Amazon from continuing to sell e-books for $9.99.

Amazon had adopted a strategy in 2007 of buying books wholesale and selling them at a loss in a bid to attract consumers to its Kindle e-reader, becoming the undisputed market leader in the process, but publishers feared the Seattle-based company's low prices would trigger a drop in the price of print books.

Apple, as it prepared for the 2010 launch of the iPad and its iBookstore, joined with publishers in a bid to limit competition in the sale of e-books, according to the suit.

Under the so-called "agency agreements" Apple entered into with publishers, the latter sets the prices of the books while the former takes a commission as the reseller.

Amazon executives, meanwhile, testified in court that the company was forced to largely abandon its $9.99 benchmark after being given an ultimatum by the publishers: either switch to the agency model or lose timely access to new books.

The pact between Apple and the publishers achieved the desired effect because e-book editions of best sellers began to be sold across-the-board for prices ranging from $12.99 to $16.99.

But once the five publishers settled with the Justice Department, e-book prices began drifting downward to earlier levels.

--IANS/EFE

rd

IANS

Source: IANS

 

Don't miss ...

 

<a href="/latest_stories/all/all/8" rel="author">Luigi Lugmayr</a>
Luigi is the founding Chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com. Luigi posts regularly on LuigiMe.com about his experience running I4U.

 

blog comments powered by Disqus

Latest stories

iPad Sales Predicted to Decrease in Q2 2014
iPad Sales Predicted to Decrease in Q2 2014
Despite a record breaking sale in the holiday season, the iPad might see a decline in sale in the second quarter of 2014
 
 
New Photos Reveal the iPad Air 2 with Integrated Front Panel and Display
New Photos Reveal the iPad Air 2 with Integrated Front Panel and Display
The move to the integrated display might turn out into a thinner shape for the upcoming iPad Air 2
 
 
How Earbuds Have Changed The Sound (And Business) Of Pop
On March 26th, Zack O’Malley Greenburg broke an exciting story for Forbes: When Wu Tang Clan releases The Wu – Once Upon a Time in Shaolin, it will be a singular piece of music in the truest sense of that word, as only...
 
 
Hearthstone vs. Rollercoaster Tycoon 4: The Battle For The Soul Of Mobile Games
It’s been an interesting month for mobile games, one that I believe clearly illustrates a split for the scene with the release of two high profile games, Blizzard’s Hearthstone and Atari’s RollerCoaster Tycoon 4....
 
 
 

Latest from the Network

VW banks on China to reach part of its 2018 goal this year - CEO
Strong sales growth in China will help Germany’s Volkswagen AG clinch its sales target of 10 million vehicles annually well ahead of 2018, the current objective, VW Chief Executive Martin Winterkorn said at the start of...
Read more on Auto Balla
 
3 Steps To Landing A Web Designer Internship
As a web designer myself, I can relate to young web designers who are just starting out and looking for a way to get their foot in the door. It’s very hard to start because many companies are looking for experienced...
Read more on Business Balla
 
4 Dow Stocks Under Accumulation
The choppy nature of the 1st quarter is not surprising after the action in 2013. The sharp declines in the Nasdaq 100 and biotechnology stocks have caused some technical damage that would normally take time to repair....
Read more on Business Balla
 
Bank Deposits, Structuring, and Asset Forfeitures
This is a version of an article originally published in the Winter 2014 issue of the White Collar Crime Committee Newsletter, Criminal Justice Section, American Bar Association.  For the original article, including full...
Read more on Business Balla
 
Is Big Data A Potential Distraction?
Over recent months, I’ve read numerous articles that have reported that many executives are struggling with ‘Big Data’. In fact, many studies report that upwards of 50-60% of executives say that their firms are weak or...
Read more on Business Balla
 
Does Doing Good In Business Imply Doing Less Well?
Many entrepreneurs still don’t understand that building a business culture today of doing good, like helping people (society) and planet (sustainability), is also a key to maximizing profit. Employees and customers...
Read more on Business Balla
 
Melissa Joan Hart: Celebrity pressure is gym motivation
Melissa Joan Hart admits the pressure of being a celebrity encourages her to go to the gym. The 38-year-old actress - who gained 60lbs while pregnant with her third child in 2012 - recently lost a dramatic 40lbs and...
Read more on Celebrity Balla
 
iPad Sales Predicted to Decrease in Q2 2014
The iPad might be unable to generate a blockbuster sale in the second quarter of 2014, as a new report claims that the device might experience a declined sale in the specific period.The report has been published by...
Read more on Apple Balla
 
New Photos Reveal the iPad Air 2 with Integrated Front Panel and Display
The next model of iPad Air might get a thinner shape, as a number of photos reveal that the device will include its front panel integrated with the display, rather than being separated.The photos have been unveiled by...
Read more on Apple Balla
 
Pebble Is Winning The Wearables War and What That Means For The iWatch
Some suggestive data indicates that the Pebble smartwatch, which sold 400,000 units in 2013, has the most staying power of the first batch of consumer wearables. null Want a clear indication that what these numbers show...
Read more on Business Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla