ibooks_icon.jpgThus far in the ongoing e-book price fixing case, Apple has maintained that it was indifferent to what business model book publishers adopted with Amazon. However, an email from Steve Jobs to Eddy Cue submitted today by the U.S. Department of Justice appeared to undermine Apple's argument, according to Fortune:

“I can live with this as long as they move Amazon to the agent model too for new releases for the first year. If not, I’m not sure we can be competitive …”

Apple's chief counsel quickly noted that the email was never sent, and AllThingsD now reports that Jobs later sent a longer, more detailed email with his complete thoughts on the negotiations with book publishers.

“I can live with this, as long as they also agree to the other thing you told me you can get: The retail price they will set for any book will be the LOWER of the applicable “iTunes” price below OR the lowest wholesale price they offer the book at to anyone else, with our wholesale price being 70% of such price. For example, normally our retail price for a $26 book will be $12.99 and we will pay 70% of that, or $9.10. However, if they offer the same book to Amazon for a wholesale price of, say $12.50, then our retail price for the same book shall be set at $12.50 and we will pay 70% of that price for the book.”

The emails provide some insight into Jobs' thought process during the negotiations. The draft and final versions of the email show that Jobs initially appeared to have strong feelings on how Amazon's pricing would have to be affected, but then according to the emails' timestamps he reconsidered his position within two hours to offer a different angle and concern about the negotiations.

The testimony portion of the case is now in the second week, with Cue set to take the stand tomorrow.

Top Rated Comments

cuda12 Avatar
142 months ago
Wonder how the government got that email :/
Score: 8 Votes (Like | Disagree)
Zachari Avatar
142 months ago
E-book pricing is not a threat to national security...

It's called "a joke".
Score: 6 Votes (Like | Disagree)
appleguy123 Avatar
142 months ago
Wonder how the government got that email :/

Probably from a subpoena, which is perfectly legal.
Score: 5 Votes (Like | Disagree)
mrxak Avatar
142 months ago
Unfortunately, this is the most likely outcome.

Apple really screwed the ebook market for consumers, as well as for small retailers, many of whom went out of business.

Even if Apple disgorges all of their ebook profits, they'll still be ahead, as they used ebooks to sell hardware.

The bankrupt small retailers and consumers will get cold comfort.
Laughable assertion. Amazon drove the small retailers out of business, not Apple. Apple just entered the market for the first time having a model that could compete with Amazon's juggernaut.

Before Apple entered the market, there is no competition. After Apple entered the market, there is competition. For some reason the DoJ has a problem with this???
Score: 4 Votes (Like | Disagree)
vmachiel Avatar
142 months ago
Spoiler alert: the case closes with a sum of money being paid. Not much will change
Score: 4 Votes (Like | Disagree)
Zachari Avatar
142 months ago
Wonder how the government got that email :/

NSA + Verizon (most likely)
Score: 4 Votes (Like | Disagree)

Popular Stories

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 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...
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

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...
iOS 17 All New Features Thumb

iOS 17.5 Will Add These New Features to Your iPhone

Sunday April 21, 2024 3:00 am PDT by
The upcoming iOS 17.5 update for the iPhone includes only a few new user-facing features, but hidden code changes reveal some additional possibilities. Below, we have recapped everything new in the iOS 17.5 and iPadOS 17.5 beta so far. Web Distribution Starting with the second beta of iOS 17.5, eligible developers are able to distribute their iOS apps to iPhone users located in the EU...