Apple SVP Eddy Cue Takes Stand in E-Book Trial, Admits Some E-Books Rose in Price - MacRumors
Skip to Content

Apple SVP Eddy Cue Takes Stand in E-Book Trial, Admits Some E-Books Rose in Price

by

EddycueEddy Cue, Apple's senior vice president in charge of internet software and services, took the stand today in the Department of Justice's antitrust case against Apple over the price of e-books following the launch of the iBooks Store in 2010.

Cue is Apple's chief negotiator and was in charge of all discussions with the major book publishing houses. The DoJ is alleging that Apple illegally worked with publishers to artificially increase e-book prices, a violation of U.S. antitrust laws.

In testimony today, Cue admitted that the prices of some e-books -- including many of those appearing on the New York Times best sellers list -- did rise after the iBooks Store was opened, but it was more the result of publishers being unhappy with Amazon's pricing of $9.99/book than anything untoward that Apple did.

Instead, Cue said that prices rose because publishers "expressed to us that they wanted higher prices". Apple's pricing model for e-books is the same agency model that it uses on the App Store -- publishers set book prices and Apple takes 30% of the revenue while returning 70% to the publishers.

He also said that he didn't know if publishers were working together on the negotiations with Apple and Amazon, but because all the publishers had issues with different parts of Apple's proposed contract Cue said that "if they talked together, I assumed it would be easier to get the deals done." Cue also said that he "wasn't trying to negotiate" for the entire e-book market and he wasn't attempting to fix issues the publishers had with Amazon.

Top Rated Comments

173 months ago
I still don't understand what Apple allegedly did wrong. They set up shop a charged a higher price?

It's illegal to collude in a monopolistic way to game a mature marketplace for more profit. If every airline were to get together and jointly decide to raise prices on a NY-LA route by $100, that's illegal.

The DOJ's argument is that Apple sat down with the 6 major book companies and colluded to raise prices on the ebook market. Their argument fails because a) it wasn't a mature marketplace, since the 'eBooks market' had been around only for a few years, and only had one main player (Amazon), who had like 90% of the market, and b) Amazon was selling many of their eBooks for far below the intended price for eBooks. In many cases, Amazon was selling eBooks on their store for at or below wholesale price, which they were doing essentially to keep pricing pressure on brick and mortar bookstores and eventually drive more of them out of business.

So essentially Amazon was the one using a monopoly to control prices. Funny how things work that way.
Score: 7 Votes (Like | Disagree)
GadgetDon Avatar
173 months ago


"So essentially Amazon was the one using a monopoly to control prices. Funny how things work that way. "

Only Amazon never had a monopoly.

Amazon controlled nearly all of the "best seller" ebook market (some niches had the publishers selling their own ebook), engaged in predatory pricing by discounting to near or below cost to ensure no other retailer could enter the market, and used their market power in physical books to threaten publishers who didn't play ball with them on eBooks.

As such, the ebook market was the Kindle market. You can argue that wasn't a monopoly, but Amazon controlled the market and was taking active steps to ensure that didn't change. And not only did the DoJ ignore this anti-competitive behavior, the state department gave Amazon a non-bid contract to provide ebooks and ebook readers because of that control.

And since you compared it to Apple's music - Apple never gave up their 30% margin so when the publishers were unhappy with Apple's control of the online music business and gave Amazon both non-DRMed music (which Apple had been asking for) and a lower price, Apple didn't go running to the DoJ screaming "collusion".

Now I will say that if there had been a deal struck between Apple and Amazon, Apple gets music and Amazon gets books, that WOULD have been collusion and Apple would have been in deep trouble for it (and maybe Amazon would FINALLY have taken a step the DoJ couldn't ignore).
Score: 5 Votes (Like | Disagree)
173 months ago
This entire trial makes you wonder who at Amazon bribed whom at the DOJ.
Score: 5 Votes (Like | Disagree)
Plutonius Avatar
173 months ago
I can argue it wasn't a monopoly. I can also argue that Amazon has not been found guilty of anything illegal. Just like people can claim that Apple has not been found guilty of anything illegal.

Also - the issue is collusion. Not Monopolies.

Regardless of what marketshare Amazon had. That doesn't entitle other companies to collude. If that is what happened. TBD

In a trial, it's important to get all the background information to arrive at a correct decision. Amazon's actions at the time are 100% pertinent to the trial. If Amazon is found to have a monopoly on the ebook market during the period in question, it does affect what's considered collusion.
Score: 4 Votes (Like | Disagree)
173 months ago


Only Amazon never had a monopoly.

Amazon met every necessary requirement for a Monopoly in the ebook market before Apple entered the market, they were the source of over 90% of the ebooks at that time. How exactly do you think they were not a monopoly?
Score: 4 Votes (Like | Disagree)
iGrip Avatar
173 months ago
I still don't understand what Apple allegedly did wrong. They set up shop a charged a higher price?
Not even close. But I suspect that you'd rather not know, and additionally, that any and all explanations that might be tendered would remain unaccepted.

But maybe I'm wrong and you really don't know. If so, here's (http://www.scribd.com/doc/145486131/U-S-v-Apple-Et-Al-Opening-Slides) a decent glimpse into what the DOJ is thinking in pursuing this action against Apple.
Score: 3 Votes (Like | Disagree)

Popular Stories

iphone 18 pro max prepare

iPhone 18 Pro Max Requires 'Prepare to Ship' Battery Drain Before Shipping

Friday September 18, 2026 4:27 pm PDT by
The iPhone 18 Pro Max has a battery capacity over 20 watt-hours, which means there are additional shipping requirements. If an iPhone 18 Pro Max needs to be shipped somewhere, its maximum battery capacity has to be limited through firmware. According to Apple, the iPhone 18 Pro Max uses an "innovative battery-firmware solution" that limits battery capacity to below 20Wh between when the...
imac video apple feature

Apple Releasing Two New Macs Next Week

Friday September 18, 2026 10:07 am PDT by
Last month, Apple announced new Mac mini and Mac Studio models, and the computers are finally set to launch this coming Tuesday, September 22. The new Mac mini is available with M6 and M5 Pro chip options, while the new Mac Studio can be configured with M5 Max or M5 Ultra chips. To learn more, read our coverage:Apple Announces New Mac Mini With M6 and M5 Pro Chips and More Apple Unveils ...
iphone duo weather

Apple Exec Says 'Hold Us Accountable' on iPhone Duo Crease

Friday September 18, 2026 9:51 pm PDT by
Apple hardware engineering VP Tom Marieb spoke with TechRadar and shared some candid thoughts about Apple's upcoming iPhone Duo. The iPhone Duo uses a matte nano-texture display, which is meant to cut down on glare and minimize the visibility of the crease. When asked if the iPhone Duo's crease would be more visible over time, as that's what tends to happen on other foldables, Marieb said...
Latest Stories
M6 Pro Chip Result on Geekbench is Likely Fake
M6 Pro Chip Result on Geekbench is Likely Fake
1 day ago
Apple Watch Ultra 4 Sees First Discount After Launch, Now $779.99 on Amazon
Apple Watch Ultra 4 Sees First Discount After Launch, Now $779.99 on Amazon
2 days ago
Top Stories: iOS 27 and macOS Golden Gate Out Now, Siri AI Waitlist, and More
Top Stories: iOS 27 and macOS Golden Gate Out Now, Siri AI Waitlist, and More
2 days ago
Apple Exec Says 'Hold Us Accountable' on iPhone Duo Crease
Apple Exec Says 'Hold Us Accountable' on iPhone Duo Crease
2 days ago
iPhone 18 Pro Max Requires 'Prepare to Ship' Battery Drain Before Shipping
iPhone 18 Pro Max Requires 'Prepare to Ship' Battery Drain Before Shipping
2 days ago
Hands-On With the Apple Watch Series 12
Hands-On With the Apple Watch Series 12
2 days ago
M5 Ultra and M6 Chip Benchmark Results Reveal Graphics Performance
M5 Ultra and M6 Chip Benchmark Results Reveal Graphics Performance
2 days ago
iPhone 18 Pro Max in U.S. Has Qualcomm's Snapdragon X80 Modem
iPhone 18 Pro Max in U.S. Has Qualcomm's Snapdragon X80 Modem
2 days ago
Apple Releases Xcode 27.1 Beta With iPhone Duo Support
Apple Releases Xcode 27.1 Beta With iPhone Duo Support
2 days ago
Apple Watch Series 12 vs. Ultra 4 Buyer's Guide
Apple Watch Series 12 vs. Ultra 4 Buyer's Guide
2 days ago
MacRumors Giveaway: Win an iPhone Duo From iMazing
MacRumors Giveaway: Win an iPhone Duo From iMazing
2 days ago
'Shop Different': Apple Retail Pioneer Ron Johnson Shares the Inside Story
'Shop Different': Apple Retail Pioneer Ron Johnson Shares the Inside Story
2 days ago
Apple Teams Up With ROSÉ for iPhone 18 Pro Camera Ad
Apple Teams Up With ROSÉ for iPhone 18 Pro Camera Ad
2 days ago
The MacRumors Show: Is the iPhone Duo Actually Worth It?
The MacRumors Show: Is the iPhone Duo Actually Worth It?
2 days ago
Apple Designers Explain the Thinking Behind iPhone Duo
Apple Designers Explain the Thinking Behind iPhone Duo
2 days ago
Are iPhone 17 Pro Cases Compatible With iPhone 18 Pro? Here's What Apple Says
Are iPhone 17 Pro Cases Compatible With iPhone 18 Pro? Here's What Apple Says
2 days ago
Apple Supplier Subsidiary Considering U.S. Flash Memory Factory
Apple Supplier Subsidiary Considering U.S. Flash Memory Factory
2 days ago
Apple Launch Day Deals on iPhone 18 Pro, AirPods 5, Apple Watch Series 12, and More
Apple Launch Day Deals on iPhone 18 Pro, AirPods 5, Apple Watch Series 12, and More
3 days ago
iPhone 18 Pro Teardown Reveals How Apple Shrunk the Dynamic Island
iPhone 18 Pro Teardown Reveals How Apple Shrunk the Dynamic Island
3 days ago
iPhone 18 Pro Demand Stronger Than Expected
iPhone 18 Pro Demand Stronger Than Expected
3 days ago
Fan Site Lets You 'Design the Next iPhone'
Fan Site Lets You 'Design the Next iPhone'
3 days ago
Apple Stores Have a New 'Hello' Easter Egg, Here's Why
Apple Stores Have a New 'Hello' Easter Egg, Here's Why
3 days ago
iPhone 18 Pro: The New Features You Should Try First
iPhone 18 Pro: The New Features You Should Try First
3 days ago
iPhone 18 Pro: Using the New Variable Aperture Lens
iPhone 18 Pro: Using the New Variable Aperture Lens
3 days ago
Forgot to Pre-Order iPhone 18 Pro? Apple Store Pickup Available Today at Most Locations
Forgot to Pre-Order iPhone 18 Pro? Apple Store Pickup Available Today at Most Locations
3 days ago
Apple CEO John Ternus Teases iPhone 18 Pro Launch Day
Apple CEO John Ternus Teases iPhone 18 Pro Launch Day
3 days ago
First iPhone 18 Pro, Apple Watch Series 12, Apple Watch Ultra 4 and AirPods 5 Orders Arriving to Customers
First iPhone 18 Pro, Apple Watch Series 12, Apple Watch Ultra 4 and AirPods 5 Orders Arriving to Customers
3 days ago
iPhone 18 Pro Launching Tomorrow With These 10 New Features
iPhone 18 Pro Launching Tomorrow With These 10 New Features
3 days ago
How to Get the New 3-Month Trial of Apple One Premier ($120 Value)
How to Get the New 3-Month Trial of Apple One Premier ($120 Value)
3 days ago
New iPhone 18 Pro Models Will Have Day One Update
New iPhone 18 Pro Models Will Have Day One Update
3 days ago