Tuesday, June 17, 2014

e-book price fixing by Apple

Apple, in an attempt to compete with Amazon.com made some illegal decisions for which it is now in court and going to pay big time. Bad decision #1 Apple apparently violated anti-trust laws thought deals which let it charge more for some e-books in its app store than it should have. This is under appeal.  Bad decision #2 Apple made a deal with 5 major publishers  to price-fix e-books, selling them at a loss to fight Amazon.com. The five are: Hachette Book Group, HarperCollins, Penguin, Macmillan, and Simon & Schuster. For this Apple is being sued for nearly $900 million. by 33 states and territories on behalf of its citizens. Apple is in denial. The big 5 agreed to pay more than $166 million to settle charges against them. These are major publishers. I cannot believe that their lawyers, and those of Apple, did not know what they were doing. Any deal for case #2 with Apple hinges on the result of the appeal of case #1. So, it is possible Apple may get out of this as an innocent party and pay nothing. We shall see. Read more about it here http://www.bbc.com/news/technology-27884580?print=true

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