Wednesday, July 10, 2013

US federal judge rules Apple conspired to raise e-book prices

9:03 PM

Following a non-jury trial that ended on June 20th, US District Judge Denise Cote has ruled that Apple conspired to raise the retail prices of e-books, according to a Reuters report published this morning. Apple has been at the focus of the Manhattan-based antitrust trial, which began last month, with publishers Macmillan and Penguin Group named as co-defendants. The violation here centered on Apple's agency pricing model, in which publishers set the price of each book and give sellers a 30 percent cut, rather than a traditional wholesale model in which retailers set the pricing at their own stores. Eddy Cue, Apple's SVP of Internet Software and Services, who was tagged as the "chief ringleader of the conspiracy" by the DOJ, went on the record earlier this year to say that some prices were inflated since the launch of the iBookstore in April of 2010 -- a statement which likely didn't help Cupertino's case. A trial for damages will reportedly follow soon.

Source: Reuters


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