US Department of Justice files charges against Apple for e-book price fixing

US Department of Justice files charges against Apple for e-book price fixing
The United States Department of Justice has formally filed charges against Apple among other e-publishers such as Hachette, HarperCollins, Macmillan, and Penguin. The charges are in response to allegations of price manipulation. These allegations accuse Apple of artificially inflating the prices of books and electronic text books sold through Apple's popular online store.

Industry analysts believed that previously-alleged back room deals between the publishing groups and the US Department of Justice had been stopped, it appears that may have been replaced with outright price manipulation. Apple contends its not doing anything wrong, and refuses to entertain any talks of settlement with the US DOJ. Neither Apple or the US Department of Justice are commenting on the subject at this time due to ongoing litigation.

Apple enjoys "favored nation" exclusivity for some of the books they sell on behalf of its publishers, and that exclusivity is now potentially being revoked. We've recently seen the attention Apple has been putting on its textbook business, so this certainly could have a big impact on the sales of that group. Regardless of the outcome of the charges, Amazon and Barnes and Noble seem to be the obvious winners as they have the most to gain out of a more competitive playing field. Electronic books is expected to surpass 1 billion dollars in 2012, so we'll continue to monitor how this plays out.

source: Bloomberg

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14 Comments

1. jmoita2

Posts: 930; Member since: Dec 23, 2011

Long overdue,in my opinion. Apple is nothing if not a huge monopoly that wants to extend its tentacles into everything. Way to go,DOJ... Eat it,Apple!!!

6. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

And monopoly is not good for all, even for Apple users.

2. remixfa

Posts: 14605; Member since: Dec 19, 2008

i still dont see why a school would buy an ipad to use as an ereader when a kindle does the same thing for 1/3rd the money. Its not like apple is giving schools a price break of any worth. That digital media book they showed off a few months back was pretty cool, but nothing the competition cant do or one up... and definitely not worth the 300% price mark up per tablet vs a kindle.

3. MorePhonesThanNeeded

Posts: 645; Member since: Oct 23, 2011

All politics and the usual incompetence that goes along with everything these days. You would think that a publicly funded outfit like public schools would choose the more efficient e reader but no, they choose the most popular and damn near most expensive device...want to bet someone was steering this ship toward the Isle of Apple?

7. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

The same in my country, national television has bought iPads...

12. jmoita2

Posts: 930; Member since: Dec 23, 2011

Which country is that?

13. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

10. smallcolabear

Posts: 82; Member since: Feb 18, 2012

When I was in grade school in the computer lab they always had to newest mac computers but could not give us better playground equipment to use.

11. Giggity

Posts: 147; Member since: Nov 17, 2011

School spending = taxpayers money So why not spend it on something totally unnecessary and cut back on extra ciricculum and nutrition lunch

4. jmoita2

Posts: 930; Member since: Dec 23, 2011

Ever heard oh Lobbying? There is your answer.

5. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

Agree!

9. remixfa

Posts: 14605; Member since: Dec 19, 2008

point. lol

8. pongkie

Posts: 663; Member since: Aug 20, 2011

Apple this is bad your victimizing children also for profit

14. InspectorGadget80 unregistered

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