ibooks-iconLast year, Apple lost a monumental e-book antitrust case that alleged the company had colluded with publishers to raise the price of e-books. As a result, Apple was forced to submit to a cumbersome external antitrust monitor and the company agreed to pay out $450 million as part of a settlement with several class action lawyers and state district attorneys.

Throughout the lawsuit, Apple maintained its innocence, and in February, the company formally filed for an appeal, asking the U.S. Circuit Court of Appeals to overturn the original ruling. In the appeal filing, Apple called the judge's decision a "radical departure" from modern antitrust law.

As of this week, Apple's case is being heard in appeals court, and it appears that things are going in the company's favor thus far. According to a report from Reuters, some of the judges "appeared sympathetic" to Apple's argument that its agreements with e-book publishers were "pro-competitive."

One of Apple's main arguments during the e-book antitrust case focused on Judge Cote's treatment of the company. Apple believes it was treated unfairly because Cote opted to ignore the positive impact that Apple had on introducing competition into the e-book market at a time when Amazon had a 90 percent market share.

Rather than being treated as a new entrant into the e-book market, which would have demanded a "rule of reason" analysis that judged Apple's impact on improving competition in a way that was good for consumers, Apple's role was viewed as "per se illegal" and automatically labeled anticompetitive despite Amazon's large command of the e-book market.

Circuit Judge Dennis Jacobs asked a Department of Justice lawyer why it was wrong for the publishers to get together to defeat a "monopolist" that was using "predatory pricing."

"It's like the mice getting together to put a bell on the cat," Jacobs said.

Circuit Judge Debra Livingston also said it was "troubling" that Apple's normally "perfectly legal" contracts were labeled as a scheme. A lawyer for Apple told the judges "We think the conduct here was innovative and pro-competitive." Should Apple win its appeal, it may not have to pay the $450 million settlement it reached in July. If the case is overturned, Apple will pay no fines, and if it's sent back to Judge Cote for a retrial, Apple will pay just $50 million to consumers and $20 million in attorney fees.

Top Rated Comments

napabar Avatar
122 months ago
What is this, Fox News?

Everything I am reading, Apple has no chance and the mountain of evidence that the original judge had is very sound.

http://www.publishersweekly.com/pw/by-topic/digital/content-and-e-books/article/65020-can-apple-win-its-e-book-appeal.html?utm_source=Publishers+Weekly&utm_campaign=3446655f4c-UA-15906914-1&utm_medium=email&utm_term=0_0bb2959cbb-3446655f4c-304719213#path/pw/by-topic/digital/content-and-e-books/article/65020-can-apple-win-its-e-book-appeal.html?utm_source=Publishers+Weekly&utm_campaign=3446655f4c-UA-15906914-1&utm_medium=email&utm_term=0_0bb2959cbb-3446655f4c-304719213



Good luck Apple and Fast Eddie, tap dancing out of this one.


Are you daft? The case against Apple is weak. Did you not read the appellate judges comments? Even they are finding it hard to believe.

Come back when you actually have read the article and put your anti-Apple, anti-business bias to rest.
Score: 13 Votes (Like | Disagree)
2457282 Avatar
122 months ago
I never understood what Apple did that was wrong. I still don't. Clearly I am not a lawyer and I am sure there is some strange law that creates a technicality that is being employed. However, for the average Joe (or Jose in my case :D), what makes sense is that Apple came in and provided the first viable option to Amazon. And have prices or competition improved since they were found guilty? No.

I hope this appeal will at least clarify what the heck the crime was in Joe/Jose terms.
Score: 8 Votes (Like | Disagree)
mw360 Avatar
122 months ago
Appellate judges? It was one of the three.

It was two of the three.
Score: 7 Votes (Like | Disagree)
Iconoclysm Avatar
122 months ago
But, but, but, a Judge prejudging a case before the trial has started is very bad, isn't?

This is an appeal...they're dealing directly with the DoJ...nice try!

----------

Weak??? They lost the case! That is why they are appealling.
Hhahahaha


Keep drinking the Kool-aide.

If it wasn't weak somehow, there would be no appeal. Please hold the unnecessary laughter when you reply.
Score: 6 Votes (Like | Disagree)
thekeyring Avatar
122 months ago
In a quick snapshot, here goes...

Amazon was selling ebooks, mostly for $9.99.

Jobs and Fast Eddie came up with a scheme to get into the ebook market for their new iPad, without having to compete with price (the last thing they wanted to do).
So they colluded with a bunch of publishers, who didn't like Amazon having so much control, to agree that the price would have to be set at $14.99, no sales, nothing.
If Amazon didn't like it, they couldn't sell the book at the price they wanted to.

And bad news for Apple, they caught Jobs on video admitting to it when asked about how to compete with Amazon, "it will cost the same".

oof.

Why is that illegal? Arguably, they were challenging Amazon's monopoly on ebooks, right?
Score: 6 Votes (Like | Disagree)
Lazy Avatar
122 months ago
Finally some sanity in a courtroom about this case.
Score: 5 Votes (Like | Disagree)

Popular Stories

Apple Silicon AI Optimized Feature Siri

Apple Releases Open Source AI Models That Run On-Device

Wednesday April 24, 2024 3:39 pm PDT by
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...
iOS 18 Siri Integrated Feature

iOS 18 Rumored to Add These 10 New Features to Your iPhone

Wednesday April 24, 2024 2:05 pm PDT by
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....
maxresdefault

Apple Announces 'Let Loose' Event on May 7 Amid Rumors of New iPads

Tuesday April 23, 2024 7:11 am PDT by
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 Vision Pro Dual Loop Band Orange Feature 2

Apple Cuts Vision Pro Shipments as Demand Falls 'Sharply Beyond Expectations'

Tuesday April 23, 2024 9:44 am PDT by
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...
iPad And Calculator App Feature 1

Apple Finally Plans to Release a Calculator App for iPad Later This Year

Tuesday April 23, 2024 9:08 am PDT by
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...
macbook pro purple february

Best Buy Introduces Record Low Prices on Apple's M3 MacBook Pro for Members

Thursday April 25, 2024 7:41 am PDT by
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...