Legal

Feds propose remedy for Apple e-book price fixing

> Apple Inc deserves a five-year ban from entering anticompetitive e-book distribution contracts, and should also end its business arrangements with five major publishers with which it conspired to raise e-book prices, federal and state regulators said on Friday.

Court’s antitrust decision against Apple is flawed

Lex McFarley:

> Here is where the Court’s logic is strained and incorrect. The Court concedes that there is nothing wrong with using the agency model, the MFN clause or pricing tier caps. So essentially the Court is finding Apple liable for antitrust violations for knowing that the publishers wanted to raise prices. The Court is essentially holding that faced with that knowledge, Apple supplied those terms (agency, MFN, price tiers) to the publishers so they could then go to Amazon and impose the agency model and raise retail prices.

Apple’s ebook trial

Adam Engst takes a look at the Apple’s ebook trial and answers some of the questions everyone has asked over the past few months.

Apple found guilty of ebook price fixing

> A federal court in New York has come down hard on Apple in a closely watched case over ebook pricing. In a ruling issued Tuesday morning, US District Judge Denise Cote ruled that the company “brilliantly” organized a conspiracy to raise prices and thwart competition.

> In a 160-page ruling, Cote points to phone calls, emails and the words of Apple founder Steve Jobs to conclude that the company orchestrated an illegal “scheme” in which five major publishers changed their pricing practices. The court said that the prime target of the conspiracy was Amazon, whose Kindle tablet competes with Apple’s iPad, and whose pricing practices infuriated publishers.