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Apple CEO Tim Cook 'May Testify' in E-Books Antitrust Lawsuit

Apple CEO Tim Cook may testify in the e-books antitrust lawsuit filed against Apple and book publishers by the United States Department of Justice, reports Bloomberg.

The lawsuit was originally filed in April of 2012, and has focused on the so-called 'agency model' for pricing ebooks that Apple attempted to negotiate with a number of publishers. Apple had pushed for the agency model in an attempt to dilute Amazon's power in the book market, where it had offered vast discounts, even sometimes selling books at a loss, in order to attract customers who would make other purchases through the site.

But the Department of Justice believes that the agency model as implemented by the publishers at Apple's behest amounts to collusion, with contracts between Apple and the publishers including language that prevented the publishers from offering lower pricing to competitors than they did to Apple. Contrary to the government's claims of an anti-competitive impact from the agency model, Apple and several of the publishers have argued that the move has fostered competitiveness by limiting Amazon's stranglehold on the book market.

The Department of Justice has settled with all of the book publishers initially accused, while Apple remains the main target of the suit.

Top Rated Comments

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18 months ago



Ironically even Apple, the largest market cap company ever, doesn't even have a basis to refute that amount of power, no matter how many lawyers they have!


Thank God that corporations do not have the power to defy governments. Not yet anyways.

Power has shifted over the centuries from the church to government. And now it is shifting again, towards the corporation.

If corporations become more powerful than governments, we will regret not having prevented it.
Rating: 10 Votes
18 months ago
Sure, Tim could testify, but they would have to reach out beyond the grave to interrogate the guy who masterminded the whole scheme.

Nobody knew how to turn a buck like Steve Jobs. Nobody.
Rating: 5 Votes
18 months ago

Thank God that corporations do not have the power to defy governments.

Corporations (legal persons) and natural persons have exactly the same amount of access to fight (defy) "government regulators" which have not yet been first PROVEN to be "arbitrary and capricious". NONE.

The cases are decided in "administrative court" with a standard of justice of "regulator presumed correct". No, I am not kidding. ALL regulators. ALL regulations. Heard of any new regulations lately?

Looks like the DoJ wants a small pot of gold themselves.

Just look at the list of the top 40 fines issued by regulators for the past 4.5 years. You would be shocked!

I would love it if Apple would publish a verified list. It might tilt the politics.

Rocketman
Rating: 4 Votes
18 months ago
Nothing new here. Apple's doing the same thing the Robber Barons used to do in fixing prices to keep them high. They can try to make Amazon the villain, but the facts speak for themselves - book prices soared 200-300% after the Apple deal and there's no way Tim Crook can make that turd smell better.
Rating: 3 Votes
18 months ago
Amazon's "price dumping" strategy is allegedly clearly unlawful and unenforced.
Rating: 2 Votes
18 months ago

I publish books. I have a hard minimum wholesale price. That's my right. If Amazon unilaterally violates that it is "theft or conversion". Fact. No alleged.


Thanks for responding. I'm in total agreement with you.

I too am a publisher, and I've experienced the same problem that you've apparently experienced — Amazon lowering our prices without our consent.

If you're interested, I'd like to discuss this issue — and possible action — more with you via PM.
Rating: 2 Votes
18 months ago
Being a UK citizen I'm not that well versed in US law, but I'm surprised how much Amazon's own self interests have been overlooked in this case.

Yes, Apple are in no way innocent, but Amazon using a monopoly strategy in the e-book market to further their own interests should be top of any law suit.
Rating: 2 Votes
18 months ago
When a "regulator" has "settled" with "targeted persons" that means it invoked its unilateral power with support of the courts of "presumed correctness", and furthermore utilized the already excessive prosecutorial power of "plea bargain" and add the absolutely unconstitutional power of that standard of justice which even exceeds "innocent until found guilty" and "beyond a reasonable doubt", on the other end of the "negotiation".

This is a route with legal police powers against citizens, and what's worse, it's "legal" and fully supported by "starry decisis". But nevertheless unconstitutional, unfair, unlawful, and just not right.

Ironically even Apple, the largest market cap company ever, doesn't even have a basis to refute that amount of power, no matter how many lawyers they have! The executive branch has managed unilateral police powers to be at their command.

Rocketman

Off-topic proof:
http://www.v-serv.com/usr/ATFE-03-16-09.pdf
Rating: 2 Votes
18 months ago
Looks like the DoJ wants a small pot of gold themselves.
Rating: 2 Votes
18 months ago

I trust honest money-grubbing infinitely more than I trust those desiring the power to regulate it...because sooner or later, they'll regulate you right into slavery.

Sooner. Now.

BTW the Constitution agrees with you.
Rating: 2 Votes

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