US sues Apple, others in e-book antitrust suit

SHARES:

10:46 PM April 11th, 2012

April 11th, 2012 10:46 PM

WASHINGTON—The US Justice Department is filing an antitrust suit against Apple and publishers over e-book pricing, the Wall Street Journal reported Wednesday.

The Justice Department scheduled an announcement for noon (1600 GMT) on a “significant antitrust matter,” according to a statement, which had no details.

Prior to the introduction of Apple’s iPad in April 2010, online retail giant Amazon, maker of the Kindle e-book reader, sold electronic versions of many new best sellers for $9.99.

But Apple forced a change in pricing for e-books when the iPad emerged as a rival e-book reading platform, moving publishers to a so-called “agency model” which calls for them to set book prices and for Apple to take a 30 percent cut.

European antitrust officials announced in December they were conducting a probe into Apple and the five publishers to determine whether they had struck illegal deals to fix the prices of e-books in Europe.

But Apple has received support from the Authors Guild, which contends that Apple helped boost competition against Amazon, which had dominated the market previously.

Disclaimer: Comments do not represent the views of INQUIRER.net. We reserve the right to exclude comments which are inconsistent with our editorial standards. FULL DISCLAIMER
For feedback, complaints, or inquiries, contact us.