Posts Tagged "Antitrust"

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Apple Found Guilty of E-Book Price Fixing

Posted by on Jul 10, 2013 in Computer Law, Copyright

On July 10, 2013 the United States District Court for the Southern District of New York ruled Apple was guilty of anti-trust violations for its role in conspiring with book publishers to raise prices for electronic books.  The five publishers, Hachette Book Group, Inc., HarperCollins Publishers LLC, Holtzbrinck Publishers LLC d/b/a Macmillan, Penguin Group Inc., and Simon & Schuster Inc., had already settled with the Department of Justice.  Apple moved to trial because it claimed it was innocent.  The trial was conducted as a bench trial from June 3 to 20 to determine liability and injunctive relief. At its heart, the court’s ruling determined Apple played a central role in facilitating and executing the conspiracy to raise e-book prices.  In the court’s opinion, without Apple the conspiracy would not have been as successful.  Amazon was charging $9.99 for e-book versions of New York Times bestsellers and other newly released hardcover books.  Apple met with the five publishers in December of 2009 and January of 2010 and suggested prices of $12.99 to $14.99 for its planned iBookstore.  Apple promised to set those prices only if it could get agreements from the publishers allowing Apple to offer e-books simultaneously with their hardcover releases. At the iBookstore’s launch new release e-books were...

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