DOJ Could Sue Apple As Soon As Today Over E-Books, Works to Settle With 5 Publishers
April 11, 2012 9:15 AM
comment(s) - last by
Apple is not part of the settlement talks with DOJ
The U.S. Department of Justice (DOJ) could
sue Apple this week
over allegations regarding raised prices of e-books via an agency sales model.
Last December, the European Commission opened a formal antitrust investigation into whether five international e-book publishers had been partaking in anticompetitive practices with the help of Apple and its e-book store iBooks. The five e-book publishers include
Hachette Livre (Lagardère Publishing France), Harper Collins (News Corp., U.S.A.), Simon & Schuster (CBS Corp., U.S.A.), Penguin (Pearson Group, United Kingdom) and Verlagsgruppe Georg von Holzbrinck (owner of inter alia Macmillan, Germany).
Traditionally, publishers sell physical books to retailers for about half of the cover price, which is considered a wholesale model. Retailers then had the ability to sell those books to customers for a lower price if they wanted to.
But when e-books came along, this model was challenged. Amazon started selling best sellers for as low as $9.99 to encourage its Kindle e-reader sales. Publishers were not happy.
Apple then came along
, and publishers began to worry that it would take over the book industry the way Apple's iTunes took over the music industry, where customers would choose to purchase cheap, digital books instead of physical books.
However, Apple struck a deal with publishers in 2010. An agency model was implemented, where publishers were allowed to set the price of a book and Apple would take a 30 percent cut. The only restriction was that publishers were not allowed to let rivals sell the same book at a lower price.
This model helped Apple because its original iPad launch occurred in 2010, which was coupled with iBooks. To assure a successful launch of the device, DOJ believes Apple cut the agency model deal with publishers, which turned out to be an anticompetitive move.
After the European Commission opened an investigation of this agreement, DOJ climbed aboard as well. After looking further into the situation,
DOJ threatened Apple and the five publishers with a lawsuit
just last month for allegedly conspiring to raise prices, which violates federal antitrust laws.
Now, DOJ may sue Apple as soon as today while still working to reach a potential settlement with the five publishers, according to
. Nothing has been set in stone, but DOJ does plan to pursue Apple.
This article is over a month old, voting and posting comments is disabled
4/11/2012 10:28:04 AM
Apple is always in court getting sued or being sued. What's wrong with that Company? It's okay for them to steal a patent, but when an invalid patents of theirs, which should have never been accepted in the first place, gets used by other companies, they react with vengeance.
I'll never buy a product from them. They are just too greedy.
RE: Apple patents
4/11/2012 11:48:49 AM
"Apple is always in court getting sued or being sued. What's wrong with that Company?"
I can sum it up in 2 words... "Buncha asshats"
Plain and simple. Apple for all its nice products and advancements to the industry, is run by greedy children. The top greedy child died last year, but there are plenty of greedy children underneath that are keeping the sue forst innovate second mentality going.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
DOJ Threatens Apple, Book Publishers with Lawsuit Regarding E-Book Sales
March 8, 2012, 9:55 AM
Apple Reinvents Textbooks/Publishing with iBook Author, iBooks 2
January 19, 2012, 11:49 AM
European Commission Targets Apple, Publishers in E-Books Antitrust Probe
December 6, 2011, 12:55 PM
Android Wear’s First Major Update Brings GPS, Offline Music Support
October 23, 2014, 1:34 PM
Samsung Announces Galaxy S5 Plus with Snapdragon 805 Processor, LTE-A
October 22, 2014, 3:40 PM
Motorola Further Increases Moto 360 Battery Life with New Update
October 22, 2014, 8:08 AM
Apple's iPad Air 2 Features Triple-core A8X Processor, 2GB of RAM
October 21, 2014, 8:32 PM
Toshiba Launches 11”, 2-in-1 Convertible PC for $329
October 21, 2014, 2:11 PM
Microsoft Begins Shifting Nokia Lumia Branding to "Microsoft Lumia"
October 21, 2014, 10:52 AM
Most Popular Articles
Chinese Government Declares Digital War Against America's Top Tech Firms
October 20, 2014, 12:07 PM
PS4 "Masamune" Update 2.0 Will Bring New Music and Customization Features
October 17, 2014, 1:05 PM
Report: 2015 Ford Focus Electric MSRP Slashed by $6,000, Will Retail for $29,995
October 18, 2014, 6:23 PM
Cool Science Video of the Day: Carnivorous Leech Eats Giant Jungle Worm
October 16, 2014, 6:44 PM
Update: Motorola Droid Turbo Coming Oct 28, 48-hour Battery Life Confirmed
October 19, 2014, 9:19 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information