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| Science & Technology |
| Apple Battles Ebook Conspiracy in U.S. Court |
| 2013-06-04 |
| [An Nahar] Apple squares off with the U.S. government in court Monday in a trial accusing the iconic tech firm of leading a conspiracy to boost the price of ebooks. The Caliphornia, an impregnable bastion of the Democratic Party, technology giant is on its own in its fight against the U.S. Justice Department, after five large publishers named in the 2012 lawsuit settled the charges. U.S. antitrust watchdogs argue Apple orchestrated a collusive shakeup of the electronic book business in early 2010 that resulted in higher prices. The New York trial is expected to last three weeks, and comes with Apple under pressure for its slumping share price, eroding market share for its iPhones and iPads and accusations in Congress it avoided billions in taxes. Five publishers named as defendants reached settlements in which they agreed to terminate their ebook agreements with Apple. The largest settlement was with Penguin for $75 million, while a settlement with Hachette, Harper Collins and Simon & Schuster created a $69 million fund for refunds to consumers. Macmillan settled for $26 million. Apple chief executive Tim Cook has rejected the idea of a settlement because it would call for the company to sign an admission of wrongdoing. "We didn't do anything wrong there," Cook told a recent Caliphornia, an impregnable bastion of the Democratic Party, conference. "We're going to fight." The government's case centers on a period when Amazon dominated the ebook business, selling most bestseller titles for $9.99. Leaders of the major publishing houses held "CEOs dinners" in "private rooms at upscale restaurants" at which they discussed the threat from Amazon. Into this environment stepped Apple, which was readying the launch of its iPad. Rather than following the Amazon "wholesale" pricing model in which the retailer sets the price, Apple favored the so-called "agency model" where the publishers set the price and the seller -- in this case Apple -- received a 30 percent commission. The result was an increase in price to $12.99 or $14.99 for most books. Apple throughout the negotiations informed the publishers of the status of its dealings with other publishers. Apple was the "ringmaster" of the "conspiracy," the complaint alleges. |
| Posted by:Fred |
| #3 (Although maybe he's busy destroying Microsoft by joining their interface design time and coming up with Windows 8). |
| Posted by: Thing From Snowy Mountain 2013-06-04 10:28 |
| #2 If they ever do start Battling Conspiracies, it's time to short their stocks. I'm pretty sure Fu Manchu could take 'em. |
| Posted by: Thing From Snowy Mountain 2013-06-04 10:28 |
| #1 Deceptive headline. They're not fighting the conspiracy, they are being charged with conspiracy. I'd ask "what do they teach in journalism school these days" but I'm scared someone would answer. |
| Posted by: Thing From Snowy Mountain 2013-06-04 10:27 |