Apple to Pay $450 Million Settlement for E-Books price fixing

 

Reuters-

Apple Inc is to pay  $450 Million Settlement after the U.S. Supreme Court on Monday refused to hear its challenge to an appellate court decision that it conspired with five publishers to increase e-book prices.

Apple, in its petition asking the high court to hear the case, said the June decision by the 2nd U.S. Circuit Court of Appeals in New York upholding a judge’s ruling that Apple had conspired with the publishers contradicted Supreme Court precedent and would “chill innovation and risk-taking.”

The Justice Department said the scheme caused some e-book prices to rise to $12.99 or $14.99 from the $9.99 price previously charged by market leader Amazon.com Inc.

“Apple’s liability for knowingly conspiring with book publishers to raise the prices of e-books is settled once and for all,” said Bill Baer, head of the U.S. Justice Department’s antitrust division. Baer called the price-fixing conspiracy “cynical misconduct.”

Publishers that the Justice Department said conspired with Apple include

  • Lagardere SCA’s (LAGA.PA)
  • Hachette Book Group Inc,
  • News Corp’s (NWSA.O)
  • HarperCollins Publishers LLC,
  • Penguin Group Inc,
  • CBS Corp’s (CBS.N)
  • Simon & Schuster Inc
  • Verlagsgruppe Georg von Holtzbrinck GmbH’s Macmillan.

Interesting to know how the market will reach to this news in coming weeks, considering the fact that Apple stocks ($AAPL) has started making few gains lately and back in the $100 territory. At this time of this report, Apple shares were down by 1.01% (17:20)

Read more

Leave a Reply

Be the First to Comment!

Notify of
wpDiscuz