News

Apple found liable for conspiring to fix e-book prices

Apple found liable for conspiring to fix e-book prices

A woman holds up an iPad with the iTunes U app after a news conference introducing a digital textbook service in New York in this January 19, 2012, file photo. Photo: Reuters/Shannon Stapleton/Files

By Nate Raymond

NEW YORK (Reuters) – A judge who found Apple Inc liable for conspiring to fix e-book prices entered an injunction on Friday to bar the iPad maker from further antitrust violations.

District Judge Denise Cote in Manhattan said Apple could not enter into agreements with five major U.S. publishers that would impede its ability to reduce e-book retail prices or offer price discounts.

The judge also said she would appoint an external monitor to review Apple’s antitrust compliance policies, procedures and training for two years.

The terms of the judgment will expire after five years, but Cote’s order allows for extensions in one-year increments if necessary.

The injunction followed a July 10 ruling by Cote finding Apple conspired with five publishers to undermine e-book pricing established by the dominant retailer in the market, Amazon.com Inc.

The five publishers, all of which have settled with regulators, include Lagardere SCA’s Hachette Book Group Inc, News Corp’s HarperCollins Publishers LLC, Penguin Random House LLC, CBS Corp’s Simon & Schuster Inc and Verlagsgruppe Georg von Holtzbrinck GmbH’s Macmillan.

The U.S. Justice Department, which sued Apple in April 2012, had initially sought an even broader injunction that could have touched on the company’s agreements with suppliers of other types of content, such as movies, music and TV shows.

But Cote had made clear at a hearing last week that she would not go that far, saying she wanted the injunction “to rest as lightly as possible on how Apple runs its business.

The Justice Department nonetheless welcomed the injunction.

“Consumers will continue to benefit from lower e-books prices as a result of the department’s enforcement action to restore competition in this important industry,” Assistant Attorney General Bill Baer said in a statement.

Apple said on Friday that it would appeal the injunction.

“Apple did not conspire to fix e-book pricing,” said company spokesman Tom Neumayr. “The iBookstore gave customers more choice and injected much-needed innovation and competition into the market.”

Shares of Apple were down 0.1 percent at $494.64 in morning trading.

The case is U.S. v. Apple Inc et al, U.S. District Court, Southern District of New York, No. 12-02826.

What's Happening at KIOA

Star Wars Weekend TXT

STWR_PAYOFF_TitleTreatment

Listen all weekend long for your chance to win a pair of tickets to Star Wars at the Science Center of Iowa’s Blank IMAX Dome Theater at the Science Center.

2016 Des Moines Home & Garden Show

HomeandGardenShow_dl

Discover what exciting things this year’s Home & Garden Show has to offer.

We Love the 80s Weekend

weekends-pm

Fall in love with the songs that were, like, radical and totally tubular! Presented by Prairie Meadows, Your Favorite Place to Play!

Valentine’s Day Vegas Getaway

valvegasgetaway-FI

Win a fabulous getaway to Las Vegas!

Amtrak’s Rails of Love

RailsofLove_DL

Enter to win a roundtrip tickets for you and your sweetheart to Chicago courtesy of Amtrak.

Hire Me Iowa

HireMeIowa_620x400_final

Looking for a job around the Des Moines area? Check out our current job listings here.

Recent Headlines

2 hours ago in Entertainment

REVIEW: ‘How To Be Single’ feels the same while trying too hard to be different

22-overlay-9

"How to Be Single" makes a valiant attempt to send up rom-com clichés but it borrows so much from other, better movies that you start to wonder if the film’s title should be "How to Commit Larceny."

4 hours ago in Entertainment

‘Star Wars’ producers face charges in Harrison Ford’s on-set accident

18-overlay-7

The "Indiana Jones" star broke his leg when the door of the Millennium Falcon fell on him during filming in 2014.