ibooks-iconThe U.S. Court of Appeals for the Second Circuit today upheld a 2013 decision that found Apple guilty of conspiring with publishers to raise the prices of e-books, reports The Wall Street Journal. Apple is now expected to pay a $450 million fine originally set in July 2014 to settle the case, with a majority of that settlement earmarked for consumers as part of a class action lawsuit.

Apple filed the appeal in the antitrust case in December 2014, and the outcome was originally expected to favor the iPhone maker, although federal judge Debra Ann Livingston ultimately determined that the company colluded with publishers to fix the prices of e-books. The decision was finalized by a 2-1 ruling in the Second U.S. Circuit Court of Appeals in Manhattan on Tuesday.

"We conclude that the district court correctly decided that Apple orchestrated a conspiracy among the publishers to raise e-book prices,” wrote Second Circuit Judge Debra Ann Livingston. The conspiracy “unreasonably restrained trade” in violation of the Sherman Act, the federal antitrust law, the judge wrote.

The Wall Street Journal has shared the full-length court document for the decision.

Top Rated Comments

bibigon Avatar
131 months ago
How does Amazon get away with it then? They sell and sold books at under he market value short changing the authors. I'm far more on the side of over charging for creative content than under. In the USA it seems the consumer being charged a fair rate for goods is more important than companies being ripped apart by allowing them to price fix and undercut. That competition is good but not at the expense of the people who create that medium. I'm sure apple are guilty but not for doing the wrong thing in my eyes they stabilised the prices and brought down prices to realistic levels for all.
Two issues with the bolded:

1) Amazon doesn't set e-book prices. That's why Apple got his with this price fixing lawsuit. Apple got the publishers to agree to move to an agency model, where the publishers set e-book prices.

2) Apple didn't bring down prices - Apple raised them. From the point of view of antitrust, and economics, we want goods and service sold at the price dictated by the intersection of supply and demand. The idea of "ruinous competition" is basically discredited at this point. The consensus of most economists is that lower prices for the consumer are a good thing. Antitrust law seeks to protect consumers first and foremost.
Score: 7 Votes (Like | Disagree)
Kabeyun Avatar
131 months ago
Anyone here think Amazon's trade has been "unreasonably restrained"? Just asking.
Score: 7 Votes (Like | Disagree)
MikhailT Avatar
131 months ago
Least Michael Bromwich the monitor is gone, right?
No, he is still in there and likely to be there for another few years to ensure Apple comply with this BS.

At least EU is looking at Amazon.
Score: 3 Votes (Like | Disagree)
bibigon Avatar
131 months ago
Anyone here think Amazon's trade has been "unreasonably restrained"? Just asking.
Well, Amazon was previously free to sell books at any price. Apple orchestrated a conspiracy which prevented them from being able to do so.
Score: 3 Votes (Like | Disagree)
BaldiMac Avatar
131 months ago
Two issues with the bolded:

1) Amazon doesn't set e-book prices. That's why Apple got his with this price fixing lawsuit. Apple got the publishers to agree to move to an agency model, where the publishers set e-book prices.
Amazon does set eBook prices ever since the publishers settled with the DOJ. The also did set eBook prices before Apple entered the market.

2) Apple didn't bring down prices - Apple raised them.
Apple didn't raise prices. Under the agency model, the publishers set prices, not Apple.

From the point of view of antitrust, and economics, we want goods and service sold at the price dictated by the intersection of supply and demand.
And yet before Apple entered the market, eBook prices were set almost entirely (90%) by Amazon. Not market forces.

The idea of "ruinous competition" is basically discredited at this point. The consensus of most economists is that lower prices for the consumer are a good thing. Antitrust law seeks to protect consumers first and foremost.
No. Antitrust law seeks to protect competition first and foremost. It is recent enforcement that seeks to put consumers over competition.
Score: 3 Votes (Like | Disagree)
Mike Reed Avatar
131 months ago
I feel like the justice department could have used a little more prosecutorial discretion here. I don't get the impression that the intent was to raise consumer costs above a fair level from any of the parties involved, nor does it seem they were trying to gain on Amazon so much as balance the field (the MFN clause).

Amazon selling eBooks at or below cost is, at best, only of short term consumer benefit. If Amazon goes on to hold 80%-90% of the market, does anyone think they won't then use that to squeeze publishers, price jab consumers or both? How is fair market value determined when they are the market?

Ignoring Apple for the moment, what could any new eBook seller do at this point to enter into the market and compete without a huge slush fund to operate at a loss? If the answer is not much/nothing then at the very least this investigation should be followed with a separate investigation of Amazon.
Score: 2 Votes (Like | Disagree)

Popular Stories

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
iPhone Car Key Kia

Here's Which Vehicles Offer iPhone Car Keys

Sunday July 6, 2025 3:03 pm PDT by
In 2020, Apple added a digital car key feature to its Wallet app, allowing users to lock, unlock, and start a compatible vehicle with an iPhone or Apple Watch. The feature is currently offered by select automakers, including Audi, BMW, Hyundai, Kia, Genesis, Mercedes-Benz, Volvo, and a handful of others, and it is set to expand further. Apple has a web page with a list of vehicle models that ...
imac video apple feature

Apple Launching These 15+ Products Later This Year

Sunday July 6, 2025 8:05 am PDT by
The calendar has turned to July, meaning that 2025 is now more than half over. And while the summer months are often quiet for Apple, the company still has more than a dozen products coming later this year, according to rumors. Below, we have outlined at least 15 new Apple products that are expected to launch later this year, along with key rumored features for each. iPhone 17 Series iPho...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
iphone 17 pro render majin bu

New iPhone 17 Pro Renders Highlight Apple Logo and MagSafe Design Changes

Sunday July 6, 2025 8:43 pm PDT by
New renders today provide the best look yet relocated Apple logo and redesigned MagSafe magnet array of the iPhone 17 Pro and iPhone 17 Pro Max. Image via Majin Bu. Several of the design changes coming to the iPhone 17 Pro model have been rumored for some time, such as the elongated camera bump that spans the full width of the device, with the LiDAR Scanner and flash moving to the right side. ...
Prime Day 25 Feature Warm Triad

The Best Early Prime Day Deals on Apple Products

Saturday July 5, 2025 7:22 am PDT by
Amazon is soon to be back with its annual summertime Prime Day event, lasting for four days from July 8-11, the longest Prime Day yet. As it does every year, Prime Day offers shoppers a huge selection of deals across Amazon's storefront, and there are already many deals you can get on sale ahead of the event. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a ...
airpods pro 2

AirPods Pro 3 to Help Maintain Apple's Place in Earbud Market Amid Increasing Low-Cost Competition

Thursday July 3, 2025 7:25 am PDT by
Apple's position as the dominant force in the global true wireless stereo (TWS) earbud market is expected to continue through 2025, according to Counterpoint Research. The forecast outlines a 3% year-over-year increase in global TWS unit shipments for 2025, signaling a transition from rapid growth to a more mature phase for the category. While Apple is set to remain the leading brand by...