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
RE: Stupid is as stupid does
4/11/2012 12:10:26 PM
Can you provide me a specific example/clause in the TOS of an eBook retailer that explicitly denies your ability to make an unencrypted backup copy of your eBooks?
RE: Stupid is as stupid does
4/11/2012 2:16:26 PM
Why don't you show me in the TOS of any e-book retailer how they would address these issues for me (copied from my own post a little farther down):
I can resell it if I want to. Can I resell an e-book?
I can gift it to someone. Donate it to the library.
Can I do that with an e-book?
Can the retailer come to my house and take back a real book that I'd bought from them, the way Amazon electronically deleted the e-book 1984 from people's devices after having sold it to them?
"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
Microsoft Gives Away iPhones to Promote Cortana's Little Sister in China
March 30, 2015, 9:59 PM
HTC's One E9+ ("A55") Unveiled, Packs Quad-HD; 1080p One E9 ("A53") Nears
March 30, 2015, 3:20 PM
HTC One M9 Plus ("Hima Ultra") w/ QHD, Duo Camera May Launch April 8
March 30, 2015, 12:36 PM
ESPN Continues to Give Windows Phone Special Attention w/ New App Makeover
March 26, 2015, 1:59 PM
NVIDIA's Latest Windows 10 Drivers: Still Too Unstable For Primetime
March 24, 2015, 4:45 PM
Samsung, Dell, Pegatron to Preinstall Microsoft Office 365 on Android Devices
March 23, 2015, 4:02 PM
Most Popular Articles
WSJ Report Implies That Google Leveraged Lobbying to Kill Antitrust Abuse Probe
March 25, 2015, 5:37 PM
Food Chemists at Italy's Barilla Claim to Have Perfect Instant Noodles w/out Frying
March 26, 2015, 4:25 PM
Apple CEO's Pledge to Give Away His Fortune is Worth More Than Face Value
March 27, 2015, 5:08 PM
Church of Scientology Buys Twitter, Facebook Space to Attack HBO Documentary
March 30, 2015, 4:27 PM
Google Readies Gmail "Pony Express" to Combat Facebook's Messenger Payments
March 25, 2015, 11:43 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
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
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information