Justice Department throws the ebook at Apple, publishers
In the aftermath of the Resurrection the community of believers was “of one heart and mind,” this Sunday’s first reading tells us. Several years ago major book publishers were of one mind about the potential threat of electronic book publishing to their bottom lines . . .
In the aftermath of the Resurrection the community of believers was fully united, being “of one heart and mind,” this Sunday’s first reading tells us. Several years ago major book publishers were of one mind about the potential threat electronic book publishing represented to their bottom lines and, together with Apple, Inc., colluded to fix ebook prices, a federal antitrust lawsuit filed Wednesday charged.
According to the complaint filed by the U.S. Department of Justice, at least five publishers—Simon & Schuster, HarperCollins, Hachette, Penguin, and Macmillan—conspired with Apple on pricing ahead of the 2010 launch of the iPad tablet and iBookstore, forcing Amazon to raise prices for ebooks on rival Kindle.
Simon & Schuster, HarperCollins, and Hachette have already settled with the Justice Department. Sources say Apple and Macmillan have refused to engage in settlement talks and deny they colluded to raise prices for digital books and that Penguin plans to fight the accussations as well.
A class action lawsuit filed in California District Court last summer by Kindle consumers was the first to allege a conspiracy. According to that case, "booksellers were 'terrified' by the discounted ebook price structure Amazon launched in 2007" and the "spooked publishers" colluded with Apple to force Amazon's hand.
Attorney General Eric Holder said that as a result of the conspiracy "consumers paid millions of dollars more for some of the most popular titles" and competition was eliminated.
According to the complaint filed by the U.S. Department of Justice, at least five publishers—Simon & Schuster, HarperCollins, Hachette, Penguin, and Macmillan—conspired with Apple on pricing ahead of the 2010 launch of the iPad tablet and iBookstore, forcing Amazon to raise prices for ebooks on rival Kindle.
Simon & Schuster, HarperCollins, and Hachette have already settled with the Justice Department. Sources say Apple and Macmillan have refused to engage in settlement talks and deny they colluded to raise prices for digital books and that Penguin plans to fight the accussations as well.
A class action lawsuit filed in California District Court last summer by Kindle consumers was the first to allege a conspiracy. According to that case, "booksellers were 'terrified' by the discounted ebook price structure Amazon launched in 2007" and the "spooked publishers" colluded with Apple to force Amazon's hand.
Attorney General Eric Holder said that as a result of the conspiracy "consumers paid millions of dollars more for some of the most popular titles" and competition was eliminated.
Sources: Articles by Dylan Stableford for The Cutline and Rob Lever for Agence France Presse