DOJ files e-book price-fixing suit against Apple

CNET

Updated April 11, 2012 10:30 a.m. ET

(CNET) The U.S. Department of Justice has filed an antitrust lawsuit against Apple for alleged e-book price fixing Wednesday CNET has confirmed. 

Apple had reportedly been in talks with federal regulators but had failed to come to an agreement to settle their concerns. Along with Apple, five book publishers are also reportedly under investigation for price fixing: HarperCollins Publishers, Hachette Book Group, Macmillan Publishers, Penguin Group, and Simon & Schuster "colluded to increase prices" on popular books. (Simon & Schuster is owned by CBS.)

Apple representatives did not immediately respond to a request for comment. The Justice Department could not be reached for comment

CNET: Apple, publishers to settle e-books price-fixing suit: Report
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CNET: Apple, book publishers face e-book antitrust lawsuit

Some of the publishers under scrutiny are expected to settle with the Justice Department this week, two unidentified people familiar with the matter told Reuters.

The probe apparently stems from changes made to how publishers charge for e-books when Apple released the first iPad two years ago. Book publishers began using an "agency model" in which publishers set their own e-book prices, rather than the traditional wholesale model in which publishers set a retail price and retailers set their own sales price.

The pricing model materialized in 2010 after book publishers asked Amazon to increase the price of e-books on its Web site, but Amazon stood firm in its contention that anything above $9.99 was too high. Amazon eventually relented after many popular Macmillan titles disappeared from the e-tailer's site.

A

Apple named in e-book price-fixing lawsuit

Lawsuit accuses Apple and a group of book publishers of conspiring to fix prices to boost profits and put pressure on Amazon.

was filed against Apple and the publishers last year. The plaintiffs alleged that they paid higher prices for their book purchases as a result of the agency model.

This article first appeared at CNET under the headline "Apple may face e-book price-fixing lawsuit tomorrow."

[308z]

DOJ consists of attorneys who made torture legal for Bush, that's how corrupt they are! So don't get your hopes up. DOJ is for sale like all of the government people. Apple will buy them off and this little matter will be dropped.

[RichZubaty]

This is why I won't deal with "anything Apple". Steve Jobs was consumed by greed and megalomania from day one. My books on Kindle sell for one third less than they cost in paper (not even including shipping) plus I get 50% more in royalties. Bravo Kindle. And anyway, people who use Apple computers don't read books. iBooks is a joke. I removed my books from them last month.

[betterusa]

I'd like to see our government be this aggressive with filing suit against the Oil Companies; talk about price fixing and gouging the consumer.

[hopeseekr]

I've been noticing more and more ebooks cost more than the *hard cover* versions!

Like these:

I Don't Have to Make Everything All Better
- Paperback: $10.20 new
- Hardcover: $5.81
- Kindle: $12.99 (22% more!)

I Hate You--Don't Leave Me
- Paperback: $10.20
- Kindle: $12.99 (22% more)

How To Talk So Kids Can Learn
- Paperback: $10.88
- Hardcover: $4.49
- Kindle: $12.99 (19% more)

All have their prices set by the publisher.

[houstontexan]

That is why I don't buy e-books from apple, the price is so high. Amazon price is better but high also. A printed version of a book is much cheaper.

[jtdev1]

the cost to publish the eBook is pennies compared to printed books, and they were not happy with the profits as they were so they had to increase the eBook price.

Greed is killing America.

[marine1957]

"price fixing as early as tomorrow"
What about yesterday or last week. Was Apple price fixing then also?
Maybe it would be better if the News Media had formatted the sentence as follows:

According to Reuters, the U.S. Department of Justice may file an antitrust lawsuit against Apple as early as tomorrow for alleged e-book price fixing.

[Bojax39]

Regardless of semantics, Apple and others will be forced to answer some searching questions. That's the crux of the matter. So even badly written news is good news in this case. :-)

[marine1957]

Bojax39:
You are certainly right on there, sir!