Wednesday, April 11, 2012

DoJ brings antitrust action against Apple

Bloomberg noted issues behind the DoJ action:

When Apple came out with the iPad in 2010, it let publishers set their own prices for e-books as long as it got a 30 percent cut and the publishers agreed to offer their lowest prices through Apple. This agency model overtook Amazon’s practice of buying books at a discount from publishers and then setting its own price for e-reader devices.

from Cutline :

According to the complaint, filed by the U.S. Department of Justice, at least five publishers—Simon & Schuster, HarperCollins, Hachette, Penguin and Macmillan—conspired with Apple to fix prices for e-books ahead of the 2010 launch of the iPad tablet and iBookstore, forcing Amazon to raise prices for e-books on the rival Kindle.


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