News

Apple found liable for conspiring to fix e-book prices

Apple found liable for conspiring to fix e-book prices

A woman holds up an iPad with the iTunes U app after a news conference introducing a digital textbook service in New York in this January 19, 2012, file photo. Photo: Reuters/Shannon Stapleton/Files

By Nate Raymond

NEW YORK (Reuters) – A judge who found Apple Inc liable for conspiring to fix e-book prices entered an injunction on Friday to bar the iPad maker from further antitrust violations.

District Judge Denise Cote in Manhattan said Apple could not enter into agreements with five major U.S. publishers that would impede its ability to reduce e-book retail prices or offer price discounts.

The judge also said she would appoint an external monitor to review Apple’s antitrust compliance policies, procedures and training for two years.

The terms of the judgment will expire after five years, but Cote’s order allows for extensions in one-year increments if necessary.

The injunction followed a July 10 ruling by Cote finding Apple conspired with five publishers to undermine e-book pricing established by the dominant retailer in the market, Amazon.com Inc.

The five publishers, all of which have settled with regulators, include Lagardere SCA’s Hachette Book Group Inc, News Corp’s HarperCollins Publishers LLC, Penguin Random House LLC, CBS Corp’s Simon & Schuster Inc and Verlagsgruppe Georg von Holtzbrinck GmbH’s Macmillan.

The U.S. Justice Department, which sued Apple in April 2012, had initially sought an even broader injunction that could have touched on the company’s agreements with suppliers of other types of content, such as movies, music and TV shows.

But Cote had made clear at a hearing last week that she would not go that far, saying she wanted the injunction “to rest as lightly as possible on how Apple runs its business.

The Justice Department nonetheless welcomed the injunction.

“Consumers will continue to benefit from lower e-books prices as a result of the department’s enforcement action to restore competition in this important industry,” Assistant Attorney General Bill Baer said in a statement.

Apple said on Friday that it would appeal the injunction.

“Apple did not conspire to fix e-book pricing,” said company spokesman Tom Neumayr. “The iBookstore gave customers more choice and injected much-needed innovation and competition into the market.”

Shares of Apple were down 0.1 percent at $494.64 in morning trading.

The case is U.S. v. Apple Inc et al, U.S. District Court, Southern District of New York, No. 12-02826.

Latest Headlines

yesterday in Viral Videos

It’s not Pitbull, it’s Amy Poehler

amy

Do you think she fooled anyone?

yesterday in Entertainment

Oscar-winner Lupita Nyong’o named ‘most beautiful’

people

The actress was named as the world's most beautiful woman for 2014 by "People" magazine.

yesterday in Lifestyle

Travel through time on Google maps

google

Google is now offering trips down memory lane on its digital maps.

yesterday in Entertainment

‘Peeps’ coming to a big screen in marshmallow movie

peeps

The film focuses on the sugary confections as they prepare to be judged at the annual Peeps diorama contest.

yesterday in Music

Led Zeppelin back with ‘Whole Lotta’ unreleased tunes

led

The rock legends will publish a number of unreleased tracks, including an alternate version of "Whole Lotta Love."

Latest Headlines

google

In Lifestyle

Travel through time on Google maps

Google is now offering trips down memory lane on its digital maps.

led

In Music

Led Zeppelin back with 'Whole Lotta' unreleased tunes

The rock legends will publish a number of unreleased tracks, including an alternate version of "Whole Lotta Love."

plane

In Lifestyle

Airlines rank lowest in traveler satisfaction

Air carriers lag hotels and online travel agencies in customer satisfaction.

hotdog

In Lifestyle, National

Kraft recalls 96K pounds of Oscar Mayer hotdogs

Just in time for cookout season, Kraft is recalling nearly 100,000 pounds of Oscar Mayer hotdogs.

The company logo is seen on the bonnet of a Mazda car during the media day ahead of the 84th Geneva Motor Show at the Palexpo Arena in Geneva March 5, 2014.

In Lifestyle

Mazda recalls 190K SUVs for rust problem

Mazda is recalling 109,000 Tribute SUVs in cold-weather states to fix rusting frame parts.