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
100 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
100 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
100 months ago
Appellate judges? It was one of the three.

It was two of the three.
Score: 7 Votes (Like | Disagree)
Iconoclysm Avatar
100 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
100 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
100 months ago
Finally some sanity in a courtroom about this case.
Score: 5 Votes (Like | Disagree)

Popular Stories

iPhone 14 Dummies 1 Feature

Everything Rumored for Apple's September Event: iPhone 14, Apple Watch Pro and More

Friday August 12, 2022 2:34 pm PDT by
There's just about a month to go until Apple holds its annual September event focusing on new iPhone and Apple Watch models. We thought we'd take a quick look at everything that's rumored for Apple's September event to give MacRumors readers a rundown on what to expect when the first fall event rolls around. iPhone 14 The iPhone 14 can probably be described more as an "iPhone 13S" because...
z fold 4 1

Hands-On With Samsung's Latest Foldable Smartphones, the Galaxy Z Fold and Z Flip

Friday August 12, 2022 12:46 pm PDT by
Samsung this week launched its fourth-generation foldable devices, the $1,000 Galaxy Z Flip and the $1,800 Galaxy Z Fold. Though there's no sign of a comparable Apple foldable device on the horizon, rumors suggest prototypes are in the works, so we thought we'd take a look at Samsung's newest smartphones to see what Apple needs to measure up to when a foldable iPhone does come out. Subscribe ...
iPhone 14 Pro Purple Rear Flat MacRumors Exclusive

iPhone 14 Pro: Analyst Believes Storage Will Continue to Start at 128GB Despite Rumored Price Increase

Friday August 12, 2022 7:04 am PDT by
It wouldn't be the month before an iPhone launch without a few back-and-forth rumors, with the latest debate concerning iPhone 14 Pro storage. iPhone 14 Pro render by Ian Zelbo While research firm TrendForce forecasted that iPhone 14 Pro models could start with an increased 256GB of storage, Haitong International analyst Jeff Pu today forecasted that the upcoming Pro models will continue to...
iPhone 14 Pro Purple Front and Back MacRumors Exclusive feature

iPhone 14 Is Just a Few Weeks Away: Three Tips to Prepare for the New iPhone

Wednesday August 10, 2022 4:08 am PDT by
The launch of the new iPhone 14 is just a few weeks away, meaning millions of iPhone customers will soon upgrade their existing iPhone or perhaps get an iPhone for the first time. Exclusive MacRumors iPhone 14 Pro renders by graphic designer Ian Zelbo Whether upgrading from an older model or this is your first iPhone, we've rounded up a few tips to help you prepare for the next flagship...
iPhone 14 Pro Lineup Feature Silver

Kuo: Apple to Increase Prices of iPhone 14 Pro Models

Wednesday August 10, 2022 8:22 am PDT by
Apple plans to increase the prices of iPhone 14 Pro models compared to iPhone 13 Pro models, according to analyst Ming-Chi Kuo. Kuo did not reveal exact pricing for the iPhone 14 Pro models. However, in a tweet today, he estimated that the average selling price of the iPhone 14 lineup as a whole will increase by about 15% compared to the iPhone 13 lineup. In the United States, the iPhone...
top stories 13aug2022

Top Stories: New Battery Percentage Icon in iOS 16, USB-C AirPods Rumor, and More

Saturday August 13, 2022 6:00 am PDT by
This week brought some shocking news for iOS 16 beta testers, with Apple bringing back the iPhone battery percentage to the status bar after a number of years. Other news and rumors this week included word that Apple has started recording portions of its media event planned for next month to introduce the iPhone 14 and Apple Watch Series 8, claims about iPhone 14 Pro pricing and Apple's...