Monday, August 12, 2013

Apple ebook punishment harms us more than them, claim publishers

The US Department of Justice last week recommended Apple be banned from entering into anti-competitive e-book distribution contracts for five years.

The penalty followed a ruling in a civil antitrust case that Apple had played a “central role” in a conspiracy with the publishers to raise e-book prices.

The five major publishers, including HarperCollins, Penguin and Macmillan, submitted papers in a Manhattan court challenging the contract ban. They believe the move will punish them rather than Apple as it would elimate to so-called "agency model" whereby the publishers, rather than Apple, set the retail price for ebooks.

Only Apple went to trial, while the publishers agreed to pay more than $166m for the benefit of consumers.

The iPhone maker filed a motion last week objecting to the DoJ’s proposal, calling it a “draconian and punitive intrusion”.

A hearing to discuss remedies is scheduled for Friday. US District Judge Denise Cote has said she also plans to hold a trial on damages.

Source....

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