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Apple's lawyer said the agency model is beneficial to both consumers and markets

The e-books price-fixing trial with Apple has begun, and a U.S. government lawyer accused Apple of conducting shady business practices with the five book publishers. 

"Apple told publishers that Apple - and only Apple - could get prices up in their industry," said Lawrence Buterman, a lawyer at the U.S. Department of Justice (DOJ). 

Buterman also added that Apple's agency model with publishers (where publishers set the price and Apple takes a 30 percent cut) hurt consumers by raising prices. 

"Overall, average prices of e-books went up, costing consumers millions of dollars," said Buterman.

The three-week trial, which started yesterday, concerns the DOJ's lawsuit against Apple in regards to its method of fixing prices for e-books. 

Orin Snyder, Apple's attorney, disagrees with the DOJ's statements. 

"What the government wants to do is reverse engineer a conspiracy from a market effect," said Snyder. "Agency [model] is good and beneficial to consumers and markets."

Snyder added that DOJ's evidence, such as emails from former Apple CEO Steve Jobs, will likely be misinterpreted. He also said that average e-book prices fell after Apple entered the market, dropping from $7.97 to $7.34.


Apple is the target of the e-books investigation along with book publishers 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). However, all the book publishers have already settled with DOJ, so Apple is the only company going to trial. 

This all started in April 2012, when the U.S. Department of Justice (DOJ) sued Apple and the five book publishers over anticompetitive practices concerning e-book sales. The book publishers were accused of partaking in an agency sales model with Apple, and the publishers could not let rivals sell the same book at a lower price. 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 with this because they thought the prices were too low.

However, Apple attempted to resolve this when it struck a deal with publishers to implement the agency model in 2010. This helped Apple at the time of its iPad and iBooks launch. But its deal with publishers made it seem like an attempt to thwart Amazon's dominance.

In April of this year, DOJ used an old email from former Apple CEO Steve Jobs as evidence in the e-books case. The email (dated in 2010) from Jobs to James Murdoch of News Corporation said, "Throw in with Apple and see if we can all make a go of this to create a real mainstream e-books market at $12.99 and $14.99.”

U.S. District Judge Denise Cote, who is overseeing the trial, said last month in a preliminary hearing that the e-books price fixing case seemed to fall in favor of the DOJ
 
"I believe that the government will be able to show at trial direct evidence that Apple knowingly participated in and facilitated a conspiracy to raise prices of e-books, and that the circumstantial evidence in this case, including the terms of the agreements, will confirm that," said Cote.

Source: Reuters



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RE: This is why so many people dislike Apple
By Tony Swash on 6/4/2013 3:12:16 PM , Rating: 1
quote:
"Your holding it wrong".


http://dontholditwrong.tumblr.com


By retrospooty on 6/4/2013 3:30:20 PM , Rating: 2
Anything to distract eh?

So, An issue on one model from one other maker excuses the asinine arrogant comment from the CEO blaming customers? What about the price fixing? What about the ridiculous PREPLANNED lawsuits in the Patent war Apple started?

http://arstechnica.com/tech-policy/2013/06/apple-b...

Just stop. Your beyond ridiculous.


RE: This is why so many people dislike Apple
By Motoman on 6/4/2013 3:41:29 PM , Rating: 2
You could stop feeding the troll...


By retrospooty on 6/4/2013 3:55:17 PM , Rating: 2
I am not feeding TS, at least I don't see it that way. I'm just not letting his never ending disinformation campaign go challenged. I put it out in the open.


RE: This is why so many people dislike Apple
By Tony Swash on 6/4/2013 3:53:31 PM , Rating: 1
quote:
So, An issue on one model from one other maker excuses the asinine arrogant comment from the CEO blaming customers?


Thank God that Samsung are so much more sensitive when they say this in the Samsung Galaxy 4 manual on Page 8:

Do not cover the antenna area with your hands or other objects. This may cause connectivity problems or drain the battery.

Samsung's beautiful and thoughtful prose just exudes the customer care, love even, that Samsung is so famous for, and which Apple so obviously lacks.


By retrospooty on 6/4/2013 3:59:00 PM , Rating: 2
So you don't think it's better to have it in the manual as far as where to hold it if signal loss is an issue? Yes it is better to not notice the problem prior to shipment, then to blame the customer, then fix it later on?

Sorry Tony that wasn't even a nice try. You don't have a leg to stand on here. Like an extremely weak argument. Better luck next article.


RE: This is why so many people dislike Apple
By Tony Swash on 6/4/2013 4:10:51 PM , Rating: 2
quote:
Yes it is better to not notice the problem prior to shipment, then to blame the customer, then fix it later on?


So when is the fix for the Galaxy 4 due?

Let's hope it's quicker than the non-existant fix for the Galaxy 3 which had this to say on page 13 and 128 of it's manual:

Do not touch the or cover the area around the antenna with your hands of other objects.

Apparently doing so "may result in reduced call quality or cause the device to emit unintended levels of radio frequency energy" Yikes!

Page 174 Galaxy 3 manual


By retrospooty on 6/4/2013 4:15:33 PM , Rating: 2
I'm still not seeing where this article or thread is about Samsung in any way shape or form. Read it again, it's about Apple and price fixing. This spawned a discussion about all the other dirty tricks Apple pulls. Where did Samsung come into it? do you seriously think no one sees you trying to totally distract from the subject matter? You are getting more and more transparent as time goes by


RE: This is why so many people dislike Apple
By sprockkets on 6/4/2013 8:10:29 PM , Rating: 2
quote:
So when is the fix for the Galaxy 4 due?


WTF?

Never, since it wasn't an issue to begin with, neither with any of those other phones on that stupid blog.

The SG4 has internal antenna's which aren't exposed via the outer metal banding like the stupid iphone4 had, allowing people to bridge one to another greatly attenuation it, versus a little like every properly made phone out there.

I mean, they only fixed it on the verizon version, then the iphone4s and above, but no, that isn't an admission of guilt, ever.


RE: This is why so many people dislike Apple
By Tony Swash on 6/4/2013 8:35:43 PM , Rating: 1
quote:
The SG4 has internal antenna's which aren't exposed via the outer metal banding like the stupid iphone4


So I guess Samsung made a silly blunder when they posted this graphic showing the antenna areas on the outside of the phone that should not be touched by the users hands?

http://dontholditwrong.tumblr.com/post/51587492179...

And when the official manual for the Samsung Galaxy S4 says on page 8 -

"Do not cover the antenna area with your hands or other objects. This may cause connectivity problems or drain the battery."


- they are actually talking about users putting their hands inside the handset?

I knew that that most Samsung phones were big but I hadn't realised they were that big!


RE: This is why so many people dislike Apple
By sprockkets on 6/4/2013 9:04:05 PM , Rating: 1
God you are so stupid/trolling.

GO FUCK YOURSELF!


By testerguy on 6/5/2013 3:59:10 AM , Rating: 1
Funniest self-humiliating response ever.

If you run out of arguments, caps lock + swearing.

Always a winner.


By croc on 6/5/2013 6:42:53 AM , Rating: 2
Do you still beat your wife?


By retrospooty on 6/4/2013 4:02:46 PM , Rating: 1
BTW... I should also point out that nowhere in the article or the thread you're replying to is Samsung mentioned. None of this has anything to do with Samsung. We are talking about Apple and the dirty tricks they pull, and you are trying to change the subject to a competitor issue.

MegaFail


RE: This is why so many people dislike Apple
By Tony Swash on 6/4/2013 4:14:17 PM , Rating: 1
You are the one who brought up the iPhone antenna issue in a discussion about e-Books.

Stop being a cry baby.


By retrospooty on 6/4/2013 4:18:41 PM , Rating: 2
It was a discussion about the dirty tricks that Apple pulls. you brought in Samsung which was totally off topic to avoid the subject and you know it, because your precious darling company is being insulted and you just can't handle it and you have no excuse for it. Who's being a crybaby? Really man you're too old for that.


RE: This is why so many people dislike Apple
By Fleeb on 6/4/2013 4:30:24 PM , Rating: 2
All antennas, if covered with any object will have connectivity issues. This is the reason why you may get bad reception inside elevators with aluminum all around.

Back when the iPhone antenna issue was mentioned, defenders would always point out it is the same thing for the all devices with antennas. You do understand the fundamental difference between antenna issues, don't you? What happens when you possibly short the antenna when touching the black strip that separates the two antennas in the iPhone? Of course, instead of acknowledging that it can happen, you do remember what Jobs said, right?


RE: This is why so many people dislike Apple
By Fleeb on 6/4/2013 4:52:33 PM , Rating: 2
Also, the issue is not about holding the device wrong. It was about acknowledging a possible design flaw. Of course, that iteration of iPhone was supposed to be flawless. The personality of Jobs would not allow that.


By retrospooty on 6/4/2013 5:19:54 PM , Rating: 2
Sadly he doesn't care about facts, he was here only to distract from the issue that made apple look bad.


RE: This is why so many people dislike Apple
By Tony Swash on 6/4/13, Rating: -1
By retrospooty on 6/4/2013 7:17:15 PM , Rating: 2
"Let's see........."

Guess what, the Ford Pinto from the 1970's had major quality problems, but its not relevant to Apple price fixing, or their nasty tactics. Are you that desperate to change the subject or are you just going senile old man? You reply to my pointing out your Samsung distraction with more Samsung distraction... Interesting. Do you think that I care about Samsung because I don't, not at all. I have no intention of buying any product they currently have, not one of them interests me. Why do you keep bringing Samsung into this discussion even after pointed out that you are using it as a distraction? (I know, I know. "ya, but Samsung...")

"As for the ridiculous eBooks legal action. Before the Apple iBooks initiative Amazon was close to securing a monopoly position in the ebooks market with a 90% share, a position Amazon's strategy was deliberately intended to achieve. Apple challenged that monopoly and, bizarrely, as a result is being legally challenged via anti-trust laws."

Oh, thank you Apple for RAISING prices on us all and stopping a monopoly. What a hero... Oh, wait, that was illegal and now they are in trouble for it. Not even a nice try at spin.

This link is from Solandri's post below...

http://www.the-digital-reader.com/wp-content/uploa...

Maybe better that you just read the whole thing. I dont want to restate what has been stated already. If you are going to comment, try and make it relevant.

http://www.dailytech.com/Article.aspx?newsid=31689...


RE: This is why so many people dislike Apple
By testerguy on 6/5/2013 4:04:35 AM , Rating: 2
quote:
Also, the issue is not about holding the device wrong. It was about acknowledging a possible design flaw.


You're accusing the 'defenders' of defending illogically, but you're attacking illogically.

I actually owned the iPhone 4. However I held it, I could never, ever, make it lose its signal. The videos I saw in which users did manage to make it lose signal, they had to grapple with the phone and hold it in such a way that no normal person would ever hold their phone.

The phone itself continues to be used to this day - in my case I never used a case, and it achieved one of the highest customer satisfaction ratings of any phone.

Now who is desperate to make a point here, calling it a 'design flaw'. I ask you how is it a design flaw if during normal use it never causes a problem (and actually the external nature of the antennas caused improved signal in some situations). Then there is the point that this trait is common to almost every phone, which is where the 'don't hold it wrong' link comes in. Pretty much every mainstream phone claims that if you hold it in a specific way, you may lose signal or drain the battery.

I have never understood the sensationalism with people like you who honestly believe that you're making a point with it. And Steve Jobs' reply of 'you're holding it wrong' - was ironically precisely correct. His point was simple, hold it like you would normally hold any phone. It comes across badly only to people desperate to latch onto anything negative Apple wise. Which is a lot of people who have been confined to this website because they were rejected everywhere else.


By retrospooty on 6/5/2013 10:12:47 AM , Rating: 2
Talk about illogical... You had one and it didnt happen to you so its not an issue? Clearly it happened to alot of people. Clearly it didn't happen to that extent on iPhone 1-3G and clearly Apple fixed it on the later Verizon iPhone 4 and all iPhone 4S. So a problem existed that Apple fixed. Nothing wrong with that in itself. It happens.

The asinine thing was the "Your holding it wrong" comment from the CEO. It should have been "We acknowledge there is a signal attenuation issue when held a certain way. We are working on a fix- a workaround is to hold it this way [then explain how to hold it, or where to find instruction]". Get it? I know you are slow, so let it sink in for a while.


RE: This is why so many people dislike Apple
By testerguy on 6/6/2013 3:20:26 AM , Rating: 2
quote:
Talk about illogical... You had one and it didnt happen to you so its not an issue?


Why on earth do I even write concise, accurate points, which already cover your nonsense questions, if you lack the capability to read it:

To quote me:

quote:
it achieved one of the highest customer satisfaction ratings of any phone


I wonder if those customer satisfaction ratings consisted of just my experiences, or a LOT of customers. Hmmm, there's a thinker...

quote:
Clearly it happened to alot of people


Sorry, why is that clear? Where is your evidence for the number of people affected? All that happened was that it became a sensationalist story and Apple issued free cases as a PR exercise. I've seen nothing whatsoever suggesting the problem was real and widespread, and the customer satisfaction surveys paint a very different picture.

quote:
Clearly it didn't happen to that extent on iPhone 1-3G and clearly Apple fixed it on the later Verizon iPhone 4 and all iPhone 4S


Again, the fact that they removed the ability for a user to hold a phone in a very obscure way to reduce signal doesn't mean that real users of the iPhone 4 were affected. It just means that Apple didn't want another PR disaster. It also, by the way, proves that the nature of the design itself (having antennas on the outside) wasn't necessarily a flawed concept.

quote:
The asinine thing was the "Your holding it wrong" comment from the CEO.


But the thing is, for any logical person - that comment simply makes sense.

If someone comes to me and says 'my beer glass isn't working, when I hold it upside down, the beer pours out' - I would have a similar response. If you use devices in a deliberately obscure way intending to cause a problem, which no normal person would do - you shouldn't be surprised if there is a problem. Using the phone normally yields no problem, and I don't think that people really need instruction on how to hold their phone. ANY normal grip would be perfectly fine. It was people deliberately seeking to reduce the signal who were able to show issues, no more.


By retrospooty on 6/6/2013 8:09:02 AM , Rating: 2
"Why on earth do I even write concise, accurate points, which already cover your nonsense questions, if you lack the capability to read it"

I dont know why you bother... The issue is I seee through your "half truths" and call you on it... And will again.

You are far more angry than intelligent and you are losing again. You are way to steeped in denial and throwing out half truths to even have a conversation with. Either denial, or just trying to argue to prove you aren't a wrong as we know you are. What evidence? The evidence that later came out when Apple ADMITTED AND FIXED THE ISSUE you heaping moron!

Also here... with references to the Anandtech article http://arstechnica.com/apple/2010/06/putting-hard-...

"As long as you have a signal strong enough to show five bars on your iPhone 4—between -51dBm and -91dBm—a 24dB drop in signal strength shouldn't drop your call or data connection. However, Apple only uses a very small range of signal strength for showing four or less bars, from -91dBm down to the usable signal cutoff of -113dBm. If your iPhone displays four bars or less, a 24dB attenuation will cut the signal below the useable limit. That's definitely a significant problem—one that Apple has so far failed to address adequately"

Everything I said in my last post covers it. The asinine thing was the "Your holding it wrong" comment from the CEO. It should have been "We acknowledge there is a signal attenuation issue when held a certain way. We are working on a fix- a workaround is to hold it this way [then explain how to hold it, or where to find instruction]".

Now you have been proven wrong AGAIN... Go slink off for another few weeks so you can pretend this didnt happen. AGAIN. See ya next time.


"Folks that want porn can buy an Android phone." -- Steve Jobs














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