Denise Cote Stories December 16, 2014

ebook-trial

Some of the judges in Apple’s appeal of last year’s ebook trial verdict appear sympathetic to the company’s argument that its deals with publishers helped, rather than hindered, competition, reports Reuters.

Circuit Judge Dennis Jacobs asked a Department of Justice lawyer why it was wrong for the publishers to get together to defeat a “monopolist” that was using “predatory pricing.”

“It’s like the mice getting together to put a bell on the cat,” Jacobs said.

The court had earlier heard evidence that at the time Apple entered the ebooks market, Amazon held a 90% market share …  expand full story

Denise Cote Stories December 2, 2014

Apple SVP Eddy Cue with Beats founders Dr Dre and Jimmy Iovine

Apple SVP Eddy Cue with Beats founders Dr Dre and Jimmy Iovine

In a new interview with Fortune, Apple’s SVP of Internet and Software Services Eddy Cue opened up about Apple’s ongoing ebooks litigation ahead of the company’s December 15th appearance before a federal appeals court. Apple formally appealed the ebooks antitrust ruling earlier this year after a judge ruled in favor of the Department of Justice in 2013 claiming that Apple conspired with ebook publishers to raise prices.

“We feel we have to fight for the truth,” says Cue. “Luckily, Tim feels exactly like I do,” he continues, referring to Apple CEO Tim Cook, “which is: You have to fight for your principles no matter what. Because it’s just not right.”

Earlier last month, U.S. District Judge Denise Cote approved a $450 million settlement under which Apple will not be forced to pay any fees if it wins the upcoming appeal. expand full story

Denise Cote Stories July 25, 2014

Apple’s ebook settlement may not be quite so settled as judge expresses concern

Just as we thought Apple’s long-running ebooks suit might finally be settled, the out-of-court agreement has been thrown into doubt. The judge required to approve the settlement terms has expressed concern that they may be unfair to consumers, reports Business Insider.

U.S. District Judge Denise Cote in Manhattan said she found “most troubling” a clause requiring Apple to pay only $70 million if an appeals court reversed her finding that the company is liable for antitrust violations and sent it back to her for further proceedings.

Apple was found guilty of price-fixing, an allegation it always denied and is currently appealing. To speed things up, lawyers on both sides agreed what would happen for each of the three possible outcomes of the appeal.

If Apple wins the appeal, it will pay nothing. If it loses the appeal, it will pay $50M in legal costs and $400M to a compensation fund for consumers. The contentious part is what happens if the appeals court overturns the original verdict but sends the case back for new proceedings. In this event, the proposal is that Apple would pay just $70M, of which the compensation fund would receive $50M.

Cote questioned if that would be fair and what might happen if the appeals court reversed her ruling on a minor issue.

This is not the first example of post-trial arguments, Apple having earlier called for the removal of the court-appointed antitrust monitor, a request rejected by the court.

Denise Cote Stories March 6, 2014

ebooks

Apple’s prospects of a successful appeal against the ruling in the ebooks trial may be improved by a brief filed by two economists from Caltech and NYU who suggest that the ruling was in error and call for it to be reversed.

Apple was found guilty of anti-competitive practices on two grounds. First, it asked publishers to switch from a wholesale pricing model – where publishers sold books in bulk and retailers set their own prices – to an agency model, where publishers set prices and retailers took a percentage cut. This, the court found, reduced price competition …  expand full story

Denise Cote Stories February 26, 2014

apple-ibooks-doj_620x350

Apple has formally appealed the Department of Justice’s ebooks antitrust case, via the Associated Press. Previously, Apple has only officially complained about the power of the appointed monitor — now they are asking for the entire case to be re-evaluated.

Apple claims it was ignorant of any inter-publisher price fixing and that Apple setup iBooks through legal arrangements without knowledge of any behind-the-scenes collusion.

expand full story

Denise Cote Stories January 13, 2014

Following Apple’s formal request last week that Michael Bromwich be removed from his role in ensuring the Cupertino company meets compliances set by the anti-trust ruling in last year’s ebooks trial, the Department of Justice has pushed back (via GigaOm) with a denial letter accusing Apple of ‘character assassination’.

Regrettably, it is now clear that Apple has chosen a campaign of character assassination over a culture of compliance. Apple could have been spending the past months working with the External Compliance Monitor with the ultimate goal of reforming its policies and training, and in the process change its corporate tone to one that reflects a commitment to abiding by the requirements of the antitrust laws. Instead, Apple has focused on personally attacking Mr. Bromwich, and thwarting him from performing even the most basic of his court-ordered functions. expand full story

Denise Cote Stories January 8, 2014

ebooks

After earlier complaining that the company was being overcharged by the court-appointed lawyer overseeing its compliance with the terms of the ebooks anti-trust ruling, Apple has now brought matters to a head by asking for Michael Bromwich to be removed from the role, reports Reuters.

An attorney for the consumer technology giant on Tuesday asked U.S. District Judge Denise Cote in Manhattan to disqualify Michael Bromwich from serving as an external compliance monitor, arguing he had shown a personal bias against the company.

In a letter to Cote, Apple’s lawyer cited a “wholly inappropriate declaration” filed by Bromwich last month …  expand full story

Denise Cote Stories May 24, 2013

Judge in Apple eBook case says U.S. government has evidence to prove pricing conspiracy ahead of trial

Earlier this month we heard that Apple submitted to the courts that it engaged in “contentious negotiations”– and not a pricing conspiracy– at a time when publishers were already considering methods of getting Amazon to increase pricing. According to the latest comments from a judge in the high-profile eBook pricing case, Apple might not be able to prove its case when it goes to trial early next month.

U.S. District Judge Denise Cote believes that the U.S Justice Department will indeed be able to prove a pricing conspiracy took place (via Bloomberg):

“I believe that the government will be able to show at trial direct evidence that Apple knowingly participated in and facilitated a conspiracy to raise prices of e-books, and that the circumstantial evidence in this case, including the terms of the agreements, will confirm that,” U.S. District Judge Denise Cote in Manhattan said yesterday.

“We strongly disagree with the court’s preliminary statements about the case,” Orin Snyder, Apple’s lead lawyer in the case, said yesterday in an e-mailed statement. “The court made clear that this was not a final ruling and that the evidence at trial will determine the verdict. This is what a trial is for.”

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