Apple Behind E-Books Price-fixing Scheme, Court Rules
Apple orchestrated a price-fixing scheme in the electronic-book market, a federal appeals court in New York ruled. The court upheld a July 2013 ruling by U.S. District Judge Denise Cote that Apple "played a central role" in conspiring with five publishers to fix the prices of electronic books.
The ruling led to changes in how e-books are priced and imposed a monitor to ensure that Apple’s antitrust compliance policies are adequate.
"Apple found an easy path to opening its iBookstore by organizing the conspiracy," said Circuit Judge Debra Ann Livingston, "while ensuring that marketwide prices rose to a level that Apple and the publishers wanted."
Apple agreed to pay $400 million, plus $50 million in lawyers’ fees, if it lost its appeal of the antitrust claims filed by the Justice Department and 33 states.
The company hasn’t said whether it will seek review by the U.S. Supreme Court.
"Apple did not conspire to fix e-book pricing and this ruling does nothing to change the facts," Cupertino, California-based Apple said in a statement.