A federal appeals court today has upheld the 2013 ruling in Apple’s long-winded and high-profile ebooks case. The case, which centered around Apple price fixing content in the iBooks store, went through three years of litigation thanks mostly to Apple. Today’s ruling by a federal appeals court will see Apple pay $450 million in damages at long last.
price-fixing Stories June 30, 2015
price-fixing 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.
price-fixing Stories June 16, 2014
Apple settled out of court in the latest e-books price-fixing suit brought against the company, allowing the company to dodge an $840 million bullet, as reported by Bloomberg. The case, brought against the Cupertino company by multiple states and consumers, was set to go before a jury next month, but that will no longer be necessary.
The terms of the settlement have not yet been revealed, and the opposing sides of the case have one month to request formal acceptable of their agreement by the court.
price-fixing Stories March 28, 2014
Judge grants class-action status to e-book customers in Apple price-fixing lawsuit
Apple is facing a new class-action lawsuit from iBooks customers over price-fixing practices according to Reuters. As has been previously argued, Apple conspired with book publishers to hike the prices of ebooks, a violation of U.S. anti-trust law. The Department of Justice won its case against Apple for the same reason last year, and Apple is currently in the middle of appealing that case.
This new lawsuit is a civil case being brought by customers affected by the price-fixing scheme. Today U.S. District Judge Denise Cote ruled that the customers suing could do so as a group despite Apple’s objections. The actual trial will be scheduled for later this year.
price-fixing Stories August 2, 2013
Apple calls DOJ ebooks remedy proposal ‘draconian and punitive’
Following the Department of Justice’s proposed settlements for the iBooks court case, Apple has submitted a response to the court that clearly shows the company is in no way interested in the suggested changes. The 31 page document is summarized quite well by the initial introduction:
Plaintiffs’ proposed injunction is a draconian and punitive intrusion into Apple’s business, wildly out of proportion to any adjudicated wrongdoing or potential harm. Plaintiffs propose a sweeping and unprecedented injunction as a tool to empower the Government to regulate Apple’s businesses and potentially affect Apple’s business relationships with thousands of partners across several markets. Plaintiffs’ overreaching proposal would establish a vague new compliance regime—applicable only to Apple—with intrusive oversight lasting for ten years, going far beyond the legal issues in this case, injuring competition and consumers, and violating basic principles of fairness and due process. The resulting cost of this relief—not only in dollars but also lost opportunities for American businesses and consumers—would be vast.
Here is the response in its entirety (via TNW):
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: expand full story