E-books: US tells Apple to cut publishing ties

August 2, 2013
A woman tries out an eBook reader app on an Apple iPad at the Leipzig Book Fair on March 15, 2012 in Germany. The US Department of Justice said Friday that tech giant Apple must cut its ties with five e-book publishers after it was found guilty of price-fixing

The US Department of Justice said Friday that tech giant Apple must cut ties with the five publishers with which it was found guilty of running an e-book price-fixing scheme.

Last month, a US district court in New York found Apple guilty of conspiring with to fix book prices for readers using its iPad and iPhone devices.

On Friday, Justice Department officials submitted to the court a plan for Apple to cut its existing ties to the publishers and to make it easier for its to sell books on its platforms.

"Under the department's proposed order, Apple's illegal conduct will cease and Apple and its senior executives will be prevented from conspiring to thwart competition in the future," assistant attorney general Bill Baer said.

The proposed settlement would see Apple end its current agreements with five US-based publishers: Hachette Book Group, HarperCollins, Macmillan, Penguin and Simon & Schuster.

The tech firm would promise not to enter new contracts with the five to limit price competition in the next five years, and would allow other e-book retailers to link to their products from iPad and iPhone apps for two years.

Apple would also be ordered to pay the salary of an external monitor to confirm its compliance with anti-trust laws.

The Department of Justice lodged a civil antitrust lawsuit against Apple and the publishers in April last year.

A visitor looks at a e-book for children at the 64th Frankfurt Book Fair in Germany, on October 10, 2012. The US Department of Justice said Friday that tech giant Apple must cut ties with the five publishers with which it was found guilty of running an e-book price-fixing scheme.

It has since reached settlements with four of the publishers and has an agreement with Macmillan that is yet to be approved by the court.

Friday's proposition on Apple's settlement still has to be approved by a federal judge.

Under the existing settlements, the publishers agreed to end any agreements they have with retailers like Apple to prevent them from discounting titles sold through their platforms.

Through its devices and software, Apple allows readers to buy electronic versions of books online and download them to a personal digital library.

In this it competes with other retailers such as Amazon and Barnes & Noble, which sell e-books through online "apps" on mobile devices, using operating systems such as Microsoft's Windows or Google's Android.

The settlement would oblige Apple to allow retailers to "provide links from their e-book apps to their e-bookstores, allowing customers who purchase and read e-books on their iPads and iPhones easily to compare Apple's prices with those of its competitors."

Explore further: Apple denies e-book pricing conspiracy

Related Stories

Apple denies e-book pricing conspiracy

April 13, 2012

Apple denied a charge that it schemed with publishers to hike prices for e-books, portraying itself as a hero for prying Amazon's "monopolistic grip" from the market.

US judge OKs partial settlement in e-book case

September 6, 2012

A US judge approved a partial settlement Thursday in a lawsuit over e-book price-fixing, allowing three publishers to end a deal with Apple that became the target of a government probe.

Apple, e-book publishers, EU find competition deal

December 13, 2012

(AP)—The European Union's competition watchdog has accepted proposals by four publishers and Apple to end agreements that set retail prices for e-books—a practice the EU feared violated competition rules.

Penguin joins settlement in US e-books lawsuit

December 18, 2012

Penguin Group has agreed to join three other publishers in a settlement of a US government lawsuit alleging an e-book price-fixing conspiracy with Apple, officials said Tuesday.

Recommended for you

Facebook ready to test giant drone for Internet service

July 30, 2015

Facebook says it will begin test flights later this year for a solar-powered drone with a wingspan as big as a Boeing 737, in the next stage of its campaign to deliver Internet connectivity to remote parts of the world.

Power grid forecasting tool reduces costly errors

July 30, 2015

Accurately forecasting future electricity needs is tricky, with sudden weather changes and other variables impacting projections minute by minute. Errors can have grave repercussions, from blackouts to high market costs. ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.