Apple responds to DOJ, says e-book price fixing "not true"

CBS

(CBS News) Apple responds to allegations by the U.S. Department of Justice of e-book price fixing.

Full coverage of Apple at Tech Talk
Justice Dept. announces three e-book settlements, but not with Apple

Apple spokesman Tom Neumayr released this statement to AllThingsD.

The Justice Department's accusation of collusion against Apple is simply not true. The launch of the iBookstore in 2010 fostered innovation and competition, breaking Amazon's monopolistic grip on the publishing industry. Since then customers have benefited from eBooks that are more interactive and engaging. Just as we've allowed developers to set prices on the App Store, publishers set prices on the iBookstore.

Attorney General Eric Holder accused Apple and five book publishers with "conspiracy" to fix the price of e-books, following the "agency model."

The agency model lets publishers set the price for book, not the retailer. In comparison, the wholesale model allows retailers to negotiate with publishers over the cost of the book rights. The retailer gets to set the price, which in theory fosters more competition to the benefit of consumers. Apple's iBookstore users the agency model, while Amazon uses a wholesale model.

CNET: This is why DOJ accused Apple of fixing e-book prices

Besides Apple, the Justice Department pressed charges against five book publishers: Macmillan Publishers, Penguin Group, Hachette Book Group, HarperCollins Publishers, and Simon & Schuster (owned by CBS)

Hachette Book Group, HarperCollins Publishers, and Simon & Schuster agreed to settled charges, Holder stated in a press conference Wednesday.

Holder also announced that retailers like Amazon and Barnes & Noble would have the "freedom to reduce the prices of their e-book titles."

Apple, Macmillan Publishers, and Penguin Group have yet to reach a settlement. From the looks of the company's statement today, it doesn't seem like Apple is planning to settle.

ANALYSIS: Justice Department may lose e-book antitrust suit against Apple

According to analysts, the Justice Department doesn't have as strong a case against Apple as the publishers, which have already settled.

"It's a harder case against Apple than the publishers," Geoffrey Manne, who teaches antitrust law at the Lewis and Clark Law School in Oregon, told CNET.

[Steve_Willis]

I'm finding this an ironic coincidence. I published an e-book on Amazon, entitled Literary Cartel and based it on an assumption that a ficticious Literary Agent's Association was operating a price-fixing cartel and would stop at nothing to protect it.

The book can be browsed at; http://www.amazon.co.uk/Literary-Cartel-ebook/dp/B006EPOND0/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1334413945&sr=1-1

[Ourdoc1]

The people will make Apple pay. Hell you cannot even read an iBook you bought from Apple on a Mac OR a PC, talk about monopolistic practices... You can buy it from them but have to own one of their 2 devices to read it.... and the prices are MUCH higher.

Sorry Apple, even as one of your customers, I still say your lying.

[hypnotoad72]

That's a real downer, if eBooks bought can't be moved to one's own computer, with a bigger, real monitor...

Still, that just means a desktop version of Apple's tool can come out. I mean, Apple's 30% cut on every sale just means more money for them. How is that unethical?

[DF68]

Apple: No one ever died making an iPhone or an iPad.

Right, Foxconn just put those suicide nets around the building for asthetic purposes.

Just another corrupt filthy rich tech company trying to make more money.


Stick it to them DOJ.

[hypnotoad72]

Agreed.

Apple's 30% take for work that they did not create is disgusting in of itself (what's that about "Robbing Peter to pay Paul"... or in this case, "Robbing Peter to pay Steve" since Steve authorized it and future CEOs may or may not change the predatory, anti-worker policies... (most app makers rake in a cool $4,000 per year and anybody who's taken programming classes knows real work and time are involved... )

Apple isn't as much filthy as it is predatory, but which corporations aren't?