AfterDawn: Tech news

Apple finally settles ebook price fixing case, avoids trial

Written by Andre Yoskowitz (Google+) @ 18 Jun 2014 20:43 User comments (4)

Apple finally settles ebook price fixing case, avoids trial Apple has reached a settlement with U.S. state governments and consumers who were seeking damages over the company's price fixing of ebooks.
The tech giant will avoid trial and has settled just like all the publishers it conspired with to raise prices. Apple had been facing over $800 million in claims if it had let the case go to trial.

Details for the agreement were not disclosed but Apple must submit a filing to seek approval within the month.

In 2012, the U.S. Department of Justice sued Apple and five of the largest book publishers claiming that the companies conspired to break Amazon's dominance of the ebook market and its wholesale pricing. At the time, Amazon would buy the rights to the books at wholesale prices and then priced them at whatever they chose, often times underpricing hit books to get traffic to their site and get more people to buy the Kindle hardware. Apple, who was launching its own bookstore with the launch of the iPad, changed the game to the "agency model" in which Apple sells the books at the prices dictated by the publisher but takes a 30 percent cut. This pushed the average price of ebooks from $9.99 to $12-14 or even higher in many cases.

Apple was found guilty about a year ago. All of the publishers have already settled, with each paying in the tens to hundreds of millions of dollars.

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4 user comments

118.6.2014 21:56

*Gasp* Apple ripping people off....shocker.


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218.6.2014 22:40

Quote:
Details for the agreement were not disclosed...
Why the f*ck not?

This is Apple vs the U.S. Department of Justice not some civil suit!

Its a lot easier being righteous than right.


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Zilog Z80 CPU, 32KB RAM (16K+16K cartridge), video processor 6847, 2KB video RAM, 16 colours (text mode), 5.25" FDD

319.6.2014 0:28

Originally posted by Jemborg:
Quote:
Details for the agreement were not disclosed...
Why the f*ck not?

This is Apple vs the U.S. Department of Justice not some civil suit!
Hasn't been approved yet since Apple hasn't submitted final deal yet!

419.6.2014 17:17

Amazon buy the books a wholesale price around 40% ($4) to 50% ($5)off. Just like any other small store or probably cheaper.
While Crapple just keep ripping the iSheeps off, like always and side with the U.S. Govt. for protection, just like the scammers Banks do, to keep stealing money from the people "legally".

The Financial System in U.S. is just a pure & simple laughable Casino.

This message has been edited since its posting. Latest edit was made on 19 Jun 2014 @ 17:21

Live Free or Die.
The rule above all the rules is: Survive !
Capitalism: Funnel most of the $$$ to the already rich.

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