Quantcast
Latest Stories

Judge finds Apple guilty in ebooks conspiracy



In this March 7, 2012, file photo, a new Apple iPad is on display during an Apple event in San Francisco. AP/Paul Sakuma

NEW YORK CITY — A judge Wednesday found Apple guilty of a price-fixing conspiracy for electronic books, saying the company “conspired to restrain trade” with publishers to boost the price of ebooks.

Judge Denise Cote, who presided over a bench trial in New York, said in her opinion that “Apple is liable here for facilitating and encouraging the Publisher Defendants’ collective, illegal restraint of trade.” She ordered a new hearing to determine damages.

Each of the five publishers originally named in the US government’s civil lawsuit settled the case, leaving Apple to stand trial alone.

Apple’s chief executive Tim Cook had said ahead of the trial that the California firm would not settle, claiming it had done nothing wrong but was merely pursuing normal business practices.

The trial focused on a six-week period in late 2009 and early 2010 during which Apple negotiated contracts with publishers ahead of its iPad launch and proposed a new and more profitable business model.

At the time, publishers were furious at the state of the market dominated by Amazon, which sold most bestsellers for just $9.99.

Amazon held “wholesale” contracts with publishers in which it set prices. Apple’s contracts shifted to an “agency” model where publishers set the price in exchange for a 30 percent commission to Apple.

Prior to Apple’s entry, the publishers — all of whom have settled in the case — would complain about Amazon’s $9.99 price at private dinners in fancy New York restaurants, but each feared taking on the Internet giant alone.

Among the publishers settling the case, the largest was with Penguin for $75 million, while a settlement with Hachette, Harper Collins and Simon & Schuster created a $69 million fund for refunds to consumers. Macmillan settled for $26 million.


Follow us on Facebook Follow on Twitter Follow on Twitter




Recent Stories:

22 houses destroyed, 3 hurt as violent wind storm hits village 44 mins elapsed 242 out of 438 pass board tests for chemical engineers 1 hour elapsed Reckless driver endangered lives of Aquino, entourage–report 1 hour elapsed Oil prices to go up on supply concerns, optimism on US rebound 1 hour elapsed QC woman who flew in from Middle East tests negative for MERS-CoV 1 hour elapsed DFA, DOH urge OFWs not to panic over MERS-Cov 1 hour elapsed 5 OFWs from Negros quarantined for MERS-CoV tests 1 hour elapsed Release of village chief’s truck caught carrying illegal logs slammed 1 hour elapsed
Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Apple , E-books , IT , Publishing , technology , US

  • kamote q

    one would think if this is possible here in the Philippines, a judge ruling against a prominent Filipino company (Meralco perhaps?) of conspiring against consumer interest



Copyright © 2014,
.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement Advertisement
  1. PH has slowest internet in Southeast Asia
  2. Netizens seethe over Aquino’s ‘sacrifice’ message
  3. Nintendo’s trailblazing Game Boy marks 25th anniversary
  4. Nasa’s moon-orbiting robot crashes down
  5. Did Deniece Cornejo lambast Vhong Navarro on social media?
  6. SKY says ‘malicious third parties’ caused internet access problems
  7. Netizens pay respects to Gabriel Garcia Marquez
  8. Facebook rolls out ‘nearby friends’ feature
  9. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  10. Taylor Swift tries video blogging, crashes into fan’s bridal shower
  1. Did Deniece Cornejo lambast Vhong Navarro on social media?
  2. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  3. Mommy Dionisia Pacquiao scores, takes over social media
  4. Netizens seethe over Aquino’s ‘sacrifice’ message
  5. IT technician found guilty of defrauding firm of P130,000
  6. Netizens react to Pacquiao’s victory over Bradley
  7. Memes flourish after Pacquiao victory
  8. Philippines may watch ‘blood moon’ online
  9. Online-addicted man arrested over son’s death
  10. Nasa’s moon-orbiting robot crashes down
  1. #RejectedBbPilipinas2014Questions flood Twitter
  2. Did Deniece Cornejo lambast Vhong Navarro on social media?
  3. Netizens fall in love with Crimea prosecutor Natalia Poklonskaya
  4. Mommy Dionisia Pacquiao scores, takes over social media
  5. Nude and so dangerous
  6. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  7. Russia tries to curb Crimean prosecutor’s Internet fame
  8. Memes flourish after Pacquiao victory
  9. Netizens thank Capa for Lee arrest
  10. Filipino artist copies piece from digital art

News

  • 22 houses destroyed, 3 hurt as violent wind storm hits village
  • 242 out of 438 pass board tests for chemical engineers
  • Reckless driver endangered lives of Aquino, entourage–report
  • 5 OFWs from Negros quarantined for MERS-CoV tests
  • Release of village chief’s truck caught carrying illegal logs slammed
  • Sports

  • Jackson finds second wind to push Meralco past Rain or Shine
  • NLEX fights off Derulo Accelero to remain unbeaten
  • Mayweather diehard Bieber eats pride, poses with Pacquiao for photo op
  • Power Pinays rip Singapore to enter quarters in Asian volley tilt
  • PBA D-League: Waves edge skidding Superchargers
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • Arrest warrants out vs. Deniece Cornejo, Cedric Lee, et al over serious illegal detention
  • Lindsay Lohan says she had a miscarriage
  • Discovery network cancels Everest jump
  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Business

  • Oil prices to go up on supply concerns, optimism on US rebound
  • Century Pacific Food sets IPO price at P13.75 per share
  • Oil prices down in quiet Asian trade
  • Asian shares mixed in holiday-thinned trade
  • BDO seen keen on bidding for Cocobank
  • Technology

  • PH has slowest internet in Southeast Asia
  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • QC woman who flew in from Middle East tests negative for MERS-CoV
  • DFA, DOH urge OFWs not to panic over MERS-Cov
  • Balikatan could spoil peace talks, says militant group
  • DFA officers hold workshop on aiding human traffic victims
  • Canada in communication with PH on toxic wastes
  • Advertisement
    Marketplace