Apple to Pay $450 Million to Settle E-Book Price Fixing Case

ibooks-iconAccording to court records filed on Wednesday, July 16, Apple will pay $450 million as part of an out-of-court settlement with class action lawyers and state district attorneys over e-book price fixing, reports Reuters.

Apple first reached a settlement agreement with the 33 U.S. states and territories involved in the lawsuit in June, successfully avoiding a lengthy and expensive damages trial. Settlement details were sealed at that time, however, pending court approval. $400 million of the $450 million is earmarked for consumers.

The settlement is contingent on a pending appeals case Apple filed in February with the U.S. Circuit Court of Appeals in New York. In the filing, Apple asked the court to overturn the original ruling that found the company guilty of conspiring to fix e-book prices.

"We have obviously studied Judge Cote's July 2013 ruling in detail, and believe that the 2nd Circuit will agree with her conclusion that Apple did violate federal antitrust laws," said Steve W. Berman, managing partner of Hagens Berman and lead attorney representing the consumer class. "In any case of this magnitude, there are high degrees of uncertainty, and Apple's appeal of Judge Cote's well-reasoned ruling is an example of that uncertainty."

Though found guilty, Apple has maintained its innocence throughout the dispute, claiming that it "kick-started competition in a highly concentrated market, delivering higher output, lower price levels, and accelerated innovation." Should Apple's appeal be successful, sending the claim back to District Court, the company will pay out $50 million to settle consumer damages claims. If the appeals court reverses the initial decision entirely, Apple will pay no damages.

Along with $450 million in damages, Apple has also been subjected to several penalties levied by the U.S. Department of Justice, including an order to hire an external antitrust monitor. Publishers involved in the case, including Hachette, HarperCollins, Simon & Schuster, Macmillan, and Penguin also settled for a total of $166 million, which has already been making its way to customers in the form of refunds.

Popular Stories

M5 MacBook Pro

Apple Announces New 14-Inch MacBook Pro With M5 Chip

Wednesday October 15, 2025 6:07 am PDT by
Apple today updated the 14-inch MacBook Pro base model with its new M5 chip, which is also available in updated iPad Pro and Vision Pro models. In addition, the base 14-inch MacBook Pro can now be configured with up to 4TB of storage on Apple's online store, whereas the previous model maxed out at 2TB. However, the maximum amount of unified RAM available for this model remains 32GB. Like...
Apple iPad Pro hero M5

Apple Debuts New iPad Pro With M5 Chip, Faster Charging, and More

Wednesday October 15, 2025 6:16 am PDT by
Apple today announced the next-generation iPad Pro, featuring the custom-designed M5, C1X, and N1 chips. The M5 chip has up to a 10-core CPU, with four performance cores and six efficiency cores. It features a next-generation GPU with Neural Accelerator in each core, allowing the new iPad Pro to deliver up to 3.5x the AI performance than the previous model, and a third-generation ray-tracing ...
iphone air thickness

Apple Said to Cut iPhone Air Production Amid Underwhelming Sales

Friday October 17, 2025 8:29 am PDT by
Apple plans to cut production of the iPhone Air amid underwhelming sales performance, Japan's Mizuho Securities believes (via The Elec). The Japanese investment banking and securities firm claims that the iPhone 17 Pro and iPhone 17 Pro Max are seeing higher sales than their predecessors during the same period last year, while the standard iPhone 17 is a major success, performing...
maxresdefault

Here's Everything Apple Announced Today

Wednesday October 15, 2025 3:54 pm PDT by
We didn't get a second fall event this year, but Apple did unveil updated products with a series of press releases that went out today. The M5 chip made an appearance in new MacBook Pro, Vision Pro, and iPad Pro models. Subscribe to the MacRumors YouTube channel for more videos. We've rounded up our coverage and highlighted the main feature changes for each device below. MacBook Pro M5...
HomePod mini and Apple TV

Apple's Next Rumored Products: New HomePod Mini, Apple TV, and More

Thursday October 16, 2025 9:13 am PDT by
Apple on Wednesday updated the 14-inch MacBook Pro, iPad Pro, and Vision Pro with its next-generation M5 chip, but previous rumors have indicated that the company still plans to announce at least a few additional products before the end of the year. The following Apple products have at one point been rumored to be updated in 2025, although it is unclear if the timeframe for any of them has...
Vision Pro M5 Announcement

Apple Updates Vision Pro With M5 Chip, Dual Knit Band, and 120Hz Support

Wednesday October 15, 2025 6:14 am PDT by
Apple today updated the Vision Pro headset with its next-generation M5 chip for faster performance, and a more comfortable Dual Knit Band. The M5 chip has a 10-core CPU, a 10-core GPU with Neural Accelerators, and a 16-core Neural Engine, and we have confirmed the Vision Pro still has 16GB of RAM. With the M5 chip, the Vision Pro offers faster performance and longer battery life compared...
14 inch MacBook Pro Keyboard

New 14-Inch MacBook Pro Has Two Key Upgrades Beyond the M5 Chip

Thursday October 16, 2025 8:31 am PDT by
Apple on Wednesday updated the 14-inch MacBook Pro base model with an M5 chip, and there are two key storage-related upgrades beyond that chip bump. First, Apple says the new 14-inch MacBook Pro offers up to 2× faster SSD performance than the equivalent previous-generation model, so read and write speeds should get a significant boost. Apple says it is using "the latest storage technology," ...
MacBook Pro M5 Screen

New MacBook Pro Does Not Include a Charger in the Box in Europe

Wednesday October 15, 2025 6:59 am PDT by
The new 14-inch MacBook Pro with an M5 chip does not include a charger in the box in European countries, including the U.K., Ireland, Germany, Italy, France, Spain, the Netherlands, Norway, and others, according to Apple's online store. In the U.S. and all other countries outside of Europe, the new MacBook Pro comes with Apple's 70W USB-C Power Adapter, but European customers miss out....
airpods max 2024 colors

AirPods Max 2: Everything We Know So Far

Tuesday October 14, 2025 8:43 am PDT by
Apple's AirPods Max have now been available for almost five years, so what do we know about the second-generation version? According to Apple supply chain analyst Ming-Chi Kuo, the new AirPods Max will be lighter than the current ones, but exactly how much is as yet known. The current AirPods Max weigh 0.85 pounds (386.2 grams), excluding the charging case, making it one of the heavier...
macbook pro blue

Apple's M5 MacBook Pro Imminent: What to Expect

Tuesday October 14, 2025 4:35 pm PDT by
Apple is going to launch a new version of the MacBook Pro as soon as tomorrow, so we thought we'd go over what to expect from Apple's upcoming Mac. M5 Chip The MacBook Pro will be one of the first new devices to use the next-generation M5 chip, which will replace the M4 chip. The M5 is built on TSMC's more advanced 3-nanometer process, and it will bring speed and efficiency improvements. ...

Top Rated Comments

heyyoudvd Avatar
147 months ago
What a joke.

Apple tries to save the e-book industry from an abusive monopolist (Amazon) and instead of being thanked for improving the state of competition, the government slaps it down to protect the monopolist.
Score: 29 Votes (Like | Disagree)
Roger Wade Avatar
147 months ago
What a shame ...

Yes, I agree with you 100%.

it's too bad that Apple has to resort to these measures when they've got billions in the bank.
Score: 21 Votes (Like | Disagree)
ouimetnick Avatar
147 months ago
What a joke.

Apple tries to save the e-book industry from an abusive monopolist (Amazon) and instead of being thanked for improving the state of competition, the government slaps it down to protect the monopolist.
Hi Tim! :cool: didn't know you have a MacRumors account.
Score: 14 Votes (Like | Disagree)
johnnnw Avatar
147 months ago
What a joke.

Apple tries to save the e-book industry from an abusive monopolist (Amazon) and instead of being thanked for improving the state of competition, the government slaps it down to protect the monopolist.
Hahahahahahahahaha you are so brainwashed it's unbelievable

Hope you don't get an email signed "Tim Cook" telling you to jump off a bridge or something, you'd believe it was him.

Tip: it's fake

Apple can do no wrong in your eyes
Score: 12 Votes (Like | Disagree)
CarpalMac Avatar
147 months ago
Though found guilty, Apple has maintained its innocence throughout the dispute
Yes, paying $450m as an out of court settlement screams "we are innocent" to me.
Score: 12 Votes (Like | Disagree)
jclo Avatar
147 months ago
I never understood that judgement. What exactly was the damage?

Legit question here, what is the difference between what Apple did and what Amazon does? Because I hear people say that Amazon gets away with worse than what Apple did.

is this the things about Apple and Publishers making prices "set" for ebooks?


This is an odd thing. it sounds like stopping the "price fix" means a company can sell books for a really low price (even at a loss) which is GOOD for the consumer.
BUT, that means smaller companies that cannot afford to sell that low or at a loss will LOOSE OUT. Which means less competition overall which isn't good for the consumer.

Like a double-edged (or triple-edged) sword.

Under the original wholesale model, companies like Amazon would pay a set amount for books from publishers and were then free to price ebooks however they wanted. Amazon often sold books at a loss or at very small profit margins to edge other sellers out of the market (and to encourage customer loyalty), which in turn forced publishers to continually cut the price on books. Publishers dislike the wholesale model because it encourages consumers to expect lower priced books, a burden that ultimately falls on them.

Under the agency model, set up by Apple, publishers set the price for books and retailers like Amazon were paid a set amount for every book sold (a 30/70 split, more or less). Because Amazon wasn't buying outright and setting its own prices, this ultimately led to higher e-book prices and more profit for publishers. Apple and six major publishers forced Amazon into an agency model over a wholesale model.

Another issue surrounding Apple's agreement with the major publishers included a "most favored nation" clause that prevented publishers from selling books at other retailers at a price lower than what was available in the iBookstore. Basically, publishers set book prices higher and no one could sell them lower than what was available in the iBookstore, and according to the DOJ, this resulted in artificially higher prices across the board for consumers. Definitely somewhat of a lose/lose situation -- either customers get higher prices or Amazon kills competition by taking a loss.
Score: 10 Votes (Like | Disagree)