Using Steve Jobs email as evidence, DOJ says Apple changed in-app purchase policy to retaliate against Amazon

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As first spotted by GigaOm, the US Department of Justice has submitted a revised remedy proposal in the ongoing ebook case that previously found Apple guilty of conspiring with publishers to control ebook pricing. While much of the proposal remains the same as the proposal it first submitted at the beginning of this month, the report points out that the DOJ has added more information and a Steve Jobs email as an exhibit showing that Apple changed its in-app purchasing policies specifically “to retaliate against Amazon for competitive conduct that Apple disapproved of.”

While referencing the email above in which Steve Jobs and Apple marketing chief Phil Schiller discuss forcing Amazon to go through Apple’s payment system, the DOJ claims Apple “misrepresented the factual circumstances” since it allows other retailers to bypass its 30% cut: Read more

DOJ proposes settlement in Apple ebook price fixing case: end current agreements, link to other stores

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After reaching settlements with just about every publisher involved in the long-running Apple/Amazon e-book price fixing case, The United States Department of Justice today published its proposal to end the case with Apple after finding the company guilty of conspiring to fix ebook prices during trial earlier this month:

“The court found that Apple’s illegal conduct deprived consumers of the benefits of e-book price competition and forced them to pay substantially higher prices,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “Under the department’s proposed order, Apple’s illegal conduct will cease and Apple and its senior executives will be prevented from conspiring to thwart competition in the future.”

Among the key points in the proposal: Read more

DOJ publicizes its case against Apple on first day of ‘ebook pricing fix’ trial

(via AP)

(via AP)

The U.S. Department of Justice has released its case against Apple in the alleged ‘ebooks pricing fix’ case (via CNET) that claims Apple made deals with book publishers to manipulate the price of ebooks.

The Justice Department believes Apple moved to raise ebook prices before Apple launched the iPad and the iBookstore so the company could benefit at the cost of the consumer.

Notably, everyone mentioned in the complaint has settled out of court ahead of this week’s trial, but Tim Cook has remained adamant that Apple is innocent of any wrongdoing.

Apple’s iBookstore has established deals with all of the major book publishers and sells ebooks on its proprietary store for viewing on Apple’s iOS devices including the iPhone, iPad, and iPod touch.

As we noted this morning, Tim Cook echoed this message at last week’s D11 conference:

The e-book case to me is bizarre. We’ve done nothing wrong there, and so we’re taking a very principled position. … We’re not going to sign something that says we did something we didn’t do. … So we’re going to fight.

The Justice Department released all 81 slides outlining its case against Apple, which you can view in its entirety below. Read more

Apple’s to DOJ: Publishers already decided to fix prices before iBookstore came along

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In the ongoing e-book price fixing case with the Department of Justice, in which Apple is accused of conspiring with publishers to fix eBook pricing and cut out Amazon, Apple has again responded to the DOJ’s claims detailing the “tough negotiations” it went through with publishers. To further prove its point that it was not colluding with publishers to fix e-book pricing, Apple said it “one-on-one” and “contentious negotiations” at a time when publishers were already considering methods of getting Amazon to increase pricing: Read more

Apple calls DOJ settlement with publishers unlawful, says trial is necessary

The U.S. Department of Justice announced a settlement in April with three of the publishers involved in the eBook price-fixing antitrust suit against Apple. Hachette, HarperCollins, and Simon & Schuster were part of the settlement, which would allow Amazon to return to its previous wholesale model and the publishers to set and reduce prices for eBook titles freely. PaidContent provided an update today on the case by reporting Apple has filed a document with the Southern District of New York. It called the proposed settlements with the three publishers “fundamentally unfair, unlawful, and unprecedented.” Apple argued that since it is not settling, the settlement would unlawfully end contracts those publishers have with Apple.

The proposed settlement would require the three settling publishers — HarperCollins, Hachette and Simon & Schuster — to terminate their existing agency pricing contracts with Apple. Apple says that isn’t fair: “The Government is seeking to impose a remedy on Apple before there has been any finding of an antitrust violation.” This case, the company states, revolves around “an alleged conspiracy to force Amazon to adopt agency.” So a settlement “enjoining collusion or precluding publishers from forcing agency on Amazon would be appropriate,” but Apple is entitled to defend its contracts in court.

Apple is hoping the courts decide to reject the settlements or delay a ruling until after the June 2013 trial. Apple also discussed Amazon’ role in the case. It claimed the government has “unwittingly placed a thumb on the scales in favor of Amazon”:
Read more

US government sues Apple in eBook price-fixing antitrust suit

Bloomberg is reporting that the United States has filed an antitrust lawsuit in a New York district court against Apple and publishers Hachette SA, HarperCollins, Macmillan, Penguin, and Simon & Schuster over alleged eBook price-fixing. The news follows reports from Reuters yesterday that the U.S. Department of Justice was preparing to launch a lawsuit against Apple and five major publishers accused of colluding to fix and increase the price of eBooks.

According to the report, all the parties named in the suit—except Macmillan, Penguin, and Apple— are willing to settle to avoid legal costs. The Department of Justice could announce “unspecified” settlements as early as today.

At the core of the settlement discussions is the agency model introduced with the iPad in 2010. The deal with publishers was described by Steve Jobs to biographer Walter Isaacson:

“We told the publishers, ‘We’ll go to the agency model, where you set the price, and we get our 30%, and yes, the customer pays a little more, but that’s what you want anyway…. They went to Amazon and said, ‘You’re going to sign an agency contract or we’re not going to give you the books.’ “

The model allows publishers to set their own prices as long as Apple gets a 30 percent cut and a guarantee that the same content is not offered lower elsewhere, but the Department of Justice is trying to return to Amazon’s wholesale model by giving retailers like Amazon control over pricing. Bloomberg explained: Read more