According to a new report from Reuters, EU authorities are about to accept a deal with Apple and four book publishers in order to end an antitrust investigation into whether Apple conspired with publishers to prevent Amazon from undercutting Apple’s ebook pricing. The companies originally proposed the settlement in late August, and it would see Amazon go back to its original ebook pricing for two years. By making the deal, Apple and the publishers will be able to put an end to the antirust investigation and avoid related fines:
Apple, Simon & Schuster, News Corp unit HarperCollins, Lagardere SCA’s Hachette Livre, and Verlagsgruppe Georg von Holtzbrinck, the owner of German company Macmillan, made the proposal to the European Commission in September…Pearson Plc’s Penguin group, which is also under investigation, did not take part in the offer.
Earlier this week, Amazon began letting customers know if they were eligible for a share of the $69 million state attorney settlements with Hachette, HarperCollins, and Simon and Schuster. Today, Apple started notifying iBooks customers, who bought an iBook from April 1, 2010 to May 21, 2012, of the same payout.
The payout will be dispersed as Kindle/iBooks credit or customers can call a number to request a check for delivery in February.
Notably, if you purchased the Steve Jobs eBook bio from Simon and Schuster on iBooks or Amazon, you should receive this notice.
To be clear, this is separate from the Federal price-fixing case surrounding Apple and some publishers. Barnes and Noble and other eBook distributors are likely doing the same thing. The Amazon version is below:
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”: Expand Expanding Close
By now you probably know that the U.S. Department of Justice launched an antitrust lawsuit against Apple and two publishers this month following an investigation into Apple’s eBook pricing agency model. Three publishers, including Hachette, HarperCollins, and Simon & Schuster, decided to reach a settlement with the Department of Justice to return to Amazon’s set-your-own price wholesale model. Meanwhile, Apple, Macmillan, and Penguin will take the fight to court.
Interestingly, a report fromThe Wall Street Journal, which is owned by the HarperCollins’ parent company News Corp, suggested Apple was only ever trying to continue its App Store business model. The Wall Street Journal’sL. Gordon Crovitz described visiting Senior Apple Executive Eddy Cue to discuss changing Apple’s policies for publications. He quoted Cue as comparing book pricing to apps and not wanting to treat publications differently than app developers: Expand Expanding Close
Following an investigation into alleged eBook price-fixing, the U.S. Department of Justice filed an antitrust lawsuit against Apple and publishers Macmillan and Penguin earlier this month, who refused to settle. Other publishers, including Hachette, HarperCollins, and Simon & Schuster, settled and reached an agreement to return Amazon to its previous wholesale model and dismantle Apple’s agency model. The settlement also included agreements with select states that would see $51 million in restitution paid to those who purchased eBooks through Apple’s platform. Now, several Canadian publications are reporting class-action lawsuits were filed against Apple and the five publishers throughout Canada.
Lawyer Normand Painchaud spoke withThe Montreal Gazetteabout his class-action suit filed in Quebec Superior Court and talked about two others filed in Ontario and British Columbia:
The U.S. Department of Justice and Attorney Gen. Eric Holder just announced (via CNN) a settlement with three publishers—Hachette, HarperCollins, and Simon & Schuster— following this morning’s report that it would launch an antitrust suit against Apple, Macmillan, and Penguin, which refused to settle. The settlement is said to give publishers the “freedom to reduce the prices of their e-book titles,” allowing Amazon to return to its previous wholesale model.
The states are seeking $51 million in restitution that will be provided through a credit toward a future book purchase or a check, although the Department of Justice’s charges remain civil. The exact details of the settlements with the three publishers were not discussed, but Apple, Penguin, and Macmillan will continue to fight charges in the lawsuit filed earlier today in New York.
As for exactly why Apple and the two other publishers have decided to take the case to court, at least one publisher is speaking. Macmillan’s Chief Executive Officer John Sargent published an open letter today explaining the company’s stance (via PaidContent). In the letter, Sargent claimed the Department of Justice’s settlement demands “could have allowed Amazon to recover the monopoly position it had built before our switch to the agency model.” He also said it is “hard to settle a lawsuit when you know you have done no wrong” and called the agency model the future of an “open and competitive market.”
Interestingly, AllThingsD pointed us to a line from the Department of Justice’s official complaint that indicates Apple proposed teaming up with Amazon at one point:
In addition to considering competitive entry at that time, though, Apple also contemplated illegally dividing the digital content world with Amazon, allowing each to “own the category” of its choice—audio/video to Apple and e-books to Amazon.
Go past the break for Sargent’s full letter, which is a great rundown of the case from the perspective of the publishers that have decided not to settle: Expand Expanding Close
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 Reutersyesterday 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: Expand Expanding Close
The U.S. Department of Justice will sue Apple as early as tomorrow morning over allegations of fixing eBook prices with five major publishers, according toReuters. The five publishers, which are also in question, will be looked at later in the week.
The Justice Department is investigating alleged price-fixing by Apple and five major publishers: CBS Corp’s Simon & Schuster Inc, HarperCollins Publishers Inc, Lagardere SCA’s Hachette Book Group, Pearson and Macmillan, a unit of Verlagsgruppe Georg von Holtzbrinck GmbH.
A lawsuit against Apple, one of the parties not in negotiations with the Justice Department for a potential settlement, could come as early as Wednesday but no final decision has been made, the people said.
The news of a lawsuit comes just weeks after the Department of Justice launched a probe into Apple and the five publishers. We will keep you updated with any more news about this case. Expand Expanding Close
The official Steve Jobs biography by Walter Isaacson, which is now set for the November 21 release, has been available for pre-order on Amazon for a while and Apple’s iBooks store also had an entry and meta data in place, but without a price and sporting the old cover, depicted below. A tipster told us (thanks, Roshan Z.) that iTunes now lists the book for pre-order for $17 (or 13 quid, above), also featuring the new cover by Albert Watson and the official description from publisher Simon & Schuster, as evident in the updated iTunes listing on the web.
Interesting that Amazon has also updated the blurb, but they still show wrong publication date (the original release date of March 6, 2012) and incorrect tittle, “Steve Jobs: A Biography” as opposed to just “Steve Jobs” (the original, rather painful title, was “iSteve: The Book of Jobs”). The online retailer has a $19.50 price tag for the hardcover, which makes it a much better deal for those preferring a dead tree version – $2.50 more compared to the digital download over at the iBooks store. iTunes already has nine “reviews” from fans eagerly awaiting this high-profile release. Also find two screenshot for the iPhone below the fold.
Image courtesy of Simon & Schuster. Click for larger.
The official Steve Jobs biography, which is based on forty interviews and set for publication by Simon & Schuster November 21, sports the memorable front cover shot depicting Apple’s leader touching his guru-like beard, his eyes piercing intensely at the camera and eyebrows slightly lifted as if he is imagining Apple’s next big thing. That image, also found on Apple’s recently revamped PR website under the Apple Leadership section, is the Albert Watson portrait taken in 2009, author Walter Isaacson revealed in a private email exchange with Fortune’s Philip Elmer-DeWitt. The back cover?
The back is a Norman Seeff portrait of him in the lotus position holding the original Macintosh, which ran in Rolling Stone in January 1984. The title font is Helvetica. It will look as you see it, with no words on the back cover.
More important to Apple fans, the earlier than expected book launch – which had been originally pinpointed for March 6, 2012 – has nothing to do with the state of Steve Jobs’s health, Isaacson told Fortune’s Elmer-DeWitt. Apple’s boss has gone on an indefinite sick leave in January 2011, his third health-related leave of absence from the company he co-founded. Here’s from Isaacson:
It’s actually not related to any decline. I turned most of the book in this past June. It’s now all done and edited. The March 2012 date (or whatever date it was) was never a deeply-considered pubdate. Like the original cover design, it came about because the publisher wanted to put something in the database last spring.
This is obviously an important tidbit for Apple fans concerned about Steve’s well-being. Go past the fold for the publisher’s long description of the book. The book is available for Pre-Order at Amazon for $20.
Amazon today lists the Walter Issacson authorized Biography of Steve Jobs, the one commissioned by the Apple CEO last year. Issacson will have had three years of access to the normally reclusive Steve Jobs. Listed at 448 pages, the book will be published by Simon & Schuster.
Product Description
From bestselling author Walter Isaacson comes the landmark biography of Apple co-founder Steve Jobs. In iSteve: The Book of Jobs, Isaacson provides an extraordinary account of Jobs’ professional and personal life. Drawn from three years of exclusive and unprecedented interviews Isaacson has conducted with Jobs as well as extensive interviews with Jobs’ family members, key colleagues from Apple and its competitors, iSteve is the definitive portrait of the greatest innovator of his generation.
About the Author
Walter Isaacson, the CEO of the Aspen Institute, has been chairman of CNN and the managing editor of Time magazine. He is the author of Benjamin Franklin: An American Life and ofKissinger: A Biography, and the coauthor of The Wise Men: Six Friends and the World They Made. He lives in Washington, D.C., with his wife and daughter.
Before you get too excited however, the book doesn’t ship for nine months (March 2012). But even so, it will likely be a big hit and as you know with iPads, it is good to get in early.
