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)