Apple’s E-Book Crime and Punishment

A U.S. District Judge ordered that Apple cannot enter into an agreement with publishers to fix the price of E-books. This comes after the Judge’s decision in July that found Apple guilty of conspiring with 5 publishers (Hachette Book Group, HarperCollins, Macmillan, Penguin Group and Simon & Schuster) to raise the price of E-books.

The decision found that during the launch of Apple’s iBooks store in 2010, Apple encouraged the publishers to set the price of E-books themselves instead of letting the market determine E-book prices. The scheme was meant to increase Amazon’s E-book prices since Apple couldn’t match their lower prices, resulting in the price of best-sellers increasing from $9.99 to $12.99 or even as high as $14.99.

The new restrictions prevent Apple from communicating with publishers to set E-book prices. Apple must also hire an external monitor to ensure future compliance.

For E-book consumers, this decision and order should ensure that E-book prices remain low and competitive.

Sources:

http://www.mediabistro.com/galleycat/judge-issues-remedy-for-apple-in-ebook-case_b77394

http://www.bbc.co.uk/news/business-23990485

http://www.bbc.co.uk/news/business-23259935

http://www.bbc.co.uk/news/business-22762653

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1 Comment

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One response to “Apple’s E-Book Crime and Punishment

  1. rlennis3

    I don’t think I will ever truly understand what Apple did wrong. The more I read the more confused I get at the rational.

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