Apple starts paying out the $400 million iBooks price-fixing settlement

Apple starts paying out the $400 million iBooks price-fixing settlement
Every user that purchased e-titles from Hachette Book Group, HarperCollins Publishers, Macmillan (Holtzbrinck Publishers), Penguin Group and Simon & Schuster between April 1, 2010 and May 21, 2012 will be receiving some sort of compensation from Apple starting today. Yep, the price-fixing lawsuit is over, and it's time for Apple to pay the piper.

The compensation you will receive in the form of book store credit or mailed check, will range from $1.57 for most e-books, to $6.93 for the most popular ones that are on the New York Times bestseller list. The total amount that Apple will have to shell out will thus be $400 million, which is no small chunk, even for the world's richest company. 

The settlement, however, is commensurate with the alleged price difference that they would enjoy if Apple hadn't set the iBooks payment scheme according to the extortionate "agency model." Colluding with some publisher thus racked up pricing 30-50% higher. compared to Amazon's more democratic "wholesale model" which led to prices of $10 a book, instead of Apple's $13 or $15 a pop for the same title. In any case, if you fit the e-books buyer profile above, expect an email for a store credit in your Amazon.com Inc., Barnes & Noble Inc., Kobo Inc. or Apple account for the respective amount soon, or, alternatively, you can get a check in the mail.


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7 Comments

1. Barney_stinson

Posts: 672; Member since: May 30, 2016

Oh dear god!! But i think apple still have chance until iphone 8!! If they will not deliever , samsung will have chance to rise up with many many product ranges to become top!!

2. dcgore

Posts: 234; Member since: Feb 24, 2012

Pizza money for Apple...

4. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

So the you think the point of suits is to make companies with money spend? The point of the suit was to protect consumers from evil greedy corps. Why should a digital book cost $15? No paper, no covers, no printing, no nothing. They make an original digital copy using fonts that are public domain. Its typed to a word-processor and then when the file is done, its copied over and over again millions of times. Its not about having the money to pay it. They should have been fined more for knowing creating the process to be greedy.

6. tedkord

Posts: 17357; Member since: Jun 17, 2009

It's not the money, it's the doing to their reputation. Getting caught breaking the law is embarrassing.

3. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Good for Apple.........they rip off people.......and ifans are still falling for it......i only laugh at sheep!

5. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Then when caught red-handed, you don't see the usual herd of sheep who come out everytime on every Samsung article starting flame wars. I am sure the usual suspects will be here, trying to protect apple and say how this isn't bad...blah blah blah.

7. willard12 unregistered

And people always ask, "how do Apple's actions affect you?" According to Amazon, it affects me to the tune of $20.14 and that's just with one $400 million settlement. I can only imagine what we all pay as companies have to pass on the cost of legal fees to consumers with their billion dollar lawsuits.

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