Apple’s e-book price fixing case is heading to trial. The tech giant is being sued by the US Justice Department over e-book pricing related to its downloadable book platform known as iBookstore.
According to the lawsuit, Apple conspired with major publishers to artificially inflate the price of e-books that were being sold for over $10.
The lawsuit claims that Apple worked with major book publishers to fix prices. The lawsuit names Macmillan, Simon & Schuster, Hachette, Pearson, and HarperCollins.
In 2010 Apple began to employ an “agency” model for e-books. That model gave publishers more control over pricing than they offered for book retailers.
Based on the agency model, Apple was able to ensure that pricing for its newly launched iBookstore would be lower or on par with brick & mortar book sellers. To reach a level playing field, Apple allegedly forced the prices of books to increase all throughout the United States.
Since the price fixing fiasco, Amazon has maintained its leading status as the nation’s largest book seller; unfortunately, Amazon now has more books selling above the $10 price point then ever before.
Speaking at the D11 conference last week, Apple CEO Tim Cook proclaimed:
“The e-book case to me is bizarre. We’ve done nothing wrong there and so we’re taking a very principled position on this … And so we’re going to fight.”
The trial will be overseen by US District Judge Denise Cote, and a ruling will be handed down without the help of a jury. Cote stated in the past that the Justice Department likely has enough evidence to prove a conspiracy.
If Apple fails to win the case, the company could be forced to determine a new negotiation strategy based on industry pricing.
Do you think Apple e-book pricing fixing was an obvious approach that will lead to a guilty verdict in Federal court?
