DOJ Says Publishers Are Again Colluding in Objecting to Proposed Apple Penalty in E-Book Case
With Apple and the U.S. Department of Justice headed back to court today for a hearing on the government's proposed penalties for Apple, GigaOM highlights several developments in the case. Of particular interest is a letter from DOJ attorney Lawrence Buterman arguing that an objection to the proposed penalties by the publishers that were part of the case is direct evidence of why the penalties are needed to protect consumers.
“A necessary component of this Court’s decision finding Apple liable for horizontal price-fixing is that the publishers themselves were engaged in a horizontal price-fixing conspiracy…[There] is reason to believe the Publisher Defendants may be positioning themselves to pick things back up where they left off as soon as their two-year clocks run. Indeed, the very fact that the Publisher Defendants have banded together once again, this time to jointly oppose two provisions in the Proposed Final Judgment that they believe could result in lower ebook prices for consumers, only highlights why it is necessary to ensure that Apple (and hopefully other retailers) can discount ebooks and compete on retail price for as long as possible.”
Apple has called the proposed penalties, which would force the company to allow competitors to bring back direct links to their e-book stores in their App Store apps and nullify existing "agency model" contracts with publishers, "draconian" and "punitive". Apple could also end up being liable for as much as $500 million in damages.
At today's hearing, Apple will also argue for a stay on further court proceedings until its appeal can be heard, proposing that a jury trial be held in October 2014. The DOJ is arguing against a stay and suggesting that an appeal trial should be held beginning in April 2014.
Update: Associated Press reports that Judge Denise Cote has denied Apple's request for a stay of the case pending appeal.
A judge on Friday refused a request by Apple to temporarily suspend her ruling that it violated antitrust laws by conspiring with publishers to raise electronic book prices in 2010.
Judge Denise Cote, ruling from the bench in Manhattan federal court, declined to withdraw the effect of last month's ruling while Cupertino, Calif.-based Apple Inc. appeals.
The maker of iPods, iPads and iPhones continues to fight what it calls "false accusations."
Popular Stories
Apple today released several open source large language models (LLMs) that are designed to run on-device rather than through cloud servers. Called OpenELM (Open-source Efficient Language Models), the LLMs are available on the Hugging Face Hub, a community for sharing AI code. As outlined in a white paper [PDF], there are eight total OpenELM models, four of which were pre-trained using the...
Apple is set to unveil iOS 18 during its WWDC keynote on June 10, so the software update is a little over six weeks away from being announced. Below, we recap rumored features and changes planned for the iPhone with iOS 18. iOS 18 will reportedly be the "biggest" update in the iPhone's history, with new ChatGPT-inspired generative AI features, a more customizable Home Screen, and much more....
Apple has announced it will be holding a special event on Tuesday, May 7 at 7 a.m. Pacific Time (10 a.m. Eastern Time), with a live stream to be available on Apple.com and on YouTube as usual. The event invitation has a tagline of "Let Loose" and shows an artistic render of an Apple Pencil, suggesting that iPads will be a focus of the event. Subscribe to the MacRumors YouTube channel for more ...
Apple has dropped the number of Vision Pro units that it plans to ship in 2024, going from an expected 700 to 800k units to just 400k to 450k units, according to Apple analyst Ming-Chi Kuo. Orders have been scaled back before the Vision Pro has launched in markets outside of the United States, which Kuo says is a sign that demand in the U.S. has "fallen sharply beyond expectations." As a...
Apple is finally planning a Calculator app for the iPad, over 14 years after launching the device, according to a source familiar with the matter. iPadOS 18 will include a built-in Calculator app for all iPad models that are compatible with the software update, which is expected to be unveiled during the opening keynote of Apple's annual developers conference WWDC on June 10. AppleInsider...
Best Buy is discounting a collection of M3 MacBook Pro computers today, this time focusing on the 14-inch version of the laptop. Every deal in this sale requires you to have a My Best Buy Plus or Total membership, although non-members can still get solid second-best prices on these MacBook Pro models. Note: MacRumors is an affiliate partner with Best Buy. When you click a link and make a...
Top Rated Comments
You make it impossible for a corporation to conduct business in the United States and then bitch and moan when they offshore jobs and keep profits overseas.
Why would a corporation reward a population and the government it elects when that population/government does everything within its legal (and made up) power to prevent that corporation from doing business?
Fight the good fight Apple. Keep that ~$100 billion overseas and invest in companies in other countries!!!
1. Amazon has a near monopoly (monopsony?)
2. Amazon can do whatever they want (it was Amazon who requested the DoJ pursue this matter in the first place)
3. Many companies are affected (if not outright killed off) by Amazon's predatory practices
4. If those companies make a peep, they are "colluding" against poor Amazon!
5. How could all the publishers respond at the same time? It's almost as though they're all responding to the same thing that just happened. Nah... collusion.
I'm glad that the DOJ is showing its true colors in this new accusation: paranoid and incompetent.
DC is a shakedown operation, so if you're not plugged in you get mugged.
This is why Bozo buying the Washington Post is such a good deal. Everyone in DC-NY corridor wonders how the digitized Wal-Mart clown will make money on a dying antique newspaper, but they don't get it - he bought influence, he bought his way into the social circle of the DOJ, Congresscritters, etc. No matter the clowns in power, Bozo has access to them with not the business of the Post but the social institution - the lunches and cocktail parties and all the rest. That's where power is in DC.
Apple is a good example of what happens when you don't grease the DC skids. They make all this money, are an American icon more effective than any propaganda, employ thousands, and make popular stuff. But they don't play the game...so you see Tim Cook be whipping boy in Congress, this DOJ shakedown, etc. Meanwhile Amazon runs vast sweatshop warehouses with a predatory money-losing business model - and gets away with it.
But they play the game better than Apple does, indeed with the WaPo purchase obviously play it better than any other digital business.
I thought that was called "dumping" and is illegal. It's only used as a means to crush competition by making it impossible for any other business to compete, while Amazon can afford to take the loss for a while until the other guys go out of business.