If you’re a regular buyer of Kindle ebooks, you want to go check your email; inside, there might just be a little present from Amazon waiting for you. And by "present" I mean "legally mandated compensation to make up for years of price-fixing." Just like Christmas!
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After plenty of tussling over the DoJ’s proposed injunction against Apple, preventing it from striking untoward pricing deals with e-book publishers, a judge at the Southern District Court of New York has today laid down the law. The final injunction prevents Apple from setting prices with any of its partners for terms of between two and four years, with the exact term depending on which publisher it’s working with and how long they originally took to settle with the DoJ — which means Apple’s relationship with Macmillan faces the harshest restriction.
Crucially, Apple also won’t be able to make “most favored nation” pacts, in which e-book prices and discounts are set across a range of publishers or retailers. This particular bit of the injunction will last for five years — a lengthy period of time in this industry, and one that can be extended by the court if it sees fit, but hardly the ten-year term that Apple’s lawyers initially feared. Finally, another key clause prevents Apple from doing business with publishers behind closed doors. For the next two years, Cupertino will have to bring in an independent third party to serve as an “Antitrust compliance officer” in all deals. Sounds humiliating, perhaps, but again, given the relatively short duration, it could have been a lot worse.
Filed under: Apple
Source: NYSD Court
Following the e-book price fixing scandal that saw Apple found guilty
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Apparently Apple isn’t the only company thinking the US Department of Justice’s recently imposed remedies against it were “draconian.” US publishers HarperCollins, Simon & Schuster, Penguin and others have also ganged up on the DOJ with a legal brief opposing the punitive restrictions. In it, they say the watchdog is “attempting to impose a specific business model on the publishing industry,” despite assertions it wouldn’t play that role. If you’ll recall, Apple was recently found guilty of price-fixing following charges filed last year. Now, the Justice Department is trying to force Apple to end its current agreements with the publishers and let rival e-book retailers like Amazon link to their own online stores.
Apple earlier condemned the decision, saying it was “wildly out of proportion to any… wrongdoing or potential harm.” The publishers added that it effectively punishes them by prohibiting the so-called agency model, which lets them set their own prices for e-books and other media. A similar affair was settled rather more amicably in Europe, meanwhile, when the same band of publishers agreed to allow other retailers to sell e-books cheaper than Apple does, if they so choose. Evidently, they feel the DOJ overstepped its bounds in the US and seem intent to back Apple to the bitter end.
Filed under: Apple
Source: AFP
According to Reuters, EU regulators look likely to accept an offer from Apple and a handful of publishers, including Simon & Schuster, HarperCollins, Hachette Livre and Macmillan. The assembled publishers propose that they will allow retailers (including Amazon) to sell e-books cheaper than Apple currently does. The move will attempt to end the EU’s anti-trust investigation that looked into the publishers’ e-book pricing model that unfairly affected retailers’ ability to compete with Apple’s own electronic book collection.
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EU regulators to accept Apple and book publishers’ offer of cheaper e-books originally appeared on Engadget on Tue, 06 Nov 2012 09:47:00 EDT. Please see our terms for use of feeds.
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Book publishers and the Department of Justice reached a settlement regarding that whole eBook-price fixing scheme last month, and now the savings are being passed on to you. If you bought one of the affected, overpriced Kindle books between April 2010 and May 2012, you’re about to get some money back. More »
In the US, the e-book price fixing scandal appears to be winding towards its inevitable conclusion. Many of the publishers settled with the DOJ right off the bat, and now the states themselves have gotten three publishing houses to cough up $69 million in their own agreement. (Of course, Apple, Macmillan and Penguin have all decided to go the trial route, but we’ll have to wait till next year to see how that plays out.) In Europe, the battle is still raging on, but Reuters is reporting that the accused are offering concessions in a bid to put the antitrust allegations behind them. The only name missing from the list is Penguin, which may or may not be part of the plea deal. Not all the details of the proposals have been revealed yet, and there’s no guarantee the commission will accept them. The heart of the settlement, however, would involve allowing Amazon to sell e-books at a discounted price for two years. Would cheaper Kindle books be good, clean fun for the whole family? Sure, but it certainly pales in comparison to the potential penalties if Apple and their publishing partners go to trial.
Filed under: Apple
Apple and publishers offer deal to put price fixing scandal behind them in EU originally appeared on Engadget on Fri, 31 Aug 2012 10:36:00 EDT. Please see our terms for use of feeds.
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When the US Department of Justice sued Apple and five major book publishers over alleged e-book price rigging, it immediately became clear that a few of these companies would do just about anything to avoid trial. That same day, three of the publishers — HarperCollins, Simon & Schuster and Hachette — elected to settle with the DoJ. Now, those same three publishers have reached an agreement in 49 states (all but Minnesota), wherein consumers will receive a combined $69 million in compensation.
Specifically, the payout applies to people who bought agency-priced e-books between April 1, 2010 and May 21, 2012. Interestingly, the payout includes folks who bought e-books from Macmillan and Penguin, even though those two publishers aren’t settling. As for making sure people get paid, Amazon, Barnes & Noble, Google, Sony, Apple and Kobo have agreed to identify and contact affected customers. According to ABC News, most of these retailers will give customers the option of receiving a check or a credit toward future purchases. Sony, meanwhile, will automatically issue checks, while Google will direct customers to an online submission form where they can file a claim. Whatever the method, payments are expected to begin 30 days after the settlement is approved. The DoJ settlement, which is separate from the agreement with the 49 states, is still awaiting clearance.
States reach $69 million settlement with three publishers in e-book price fixing case originally appeared on Engadget on Thu, 30 Aug 2012 11:43:00 EDT. Please see our terms for use of feeds.
The European Commission is digging it its heels and officially launching an investigation into 13 companies for allegedly rigging bids on optical drives with at least two major OEMs. The companies haven’t been named, but it’s safe to assume if the Commission is getting involved these aren’t two-bit players selling cheap knockoffs. With the Statement of Objections issued, now its a matter of gathering evidence and formally charging those it can build a case against. With an e-book investigation underway and a DRAM conspiracy not far in its past, the existence of an optical drive cartel is probably not the sort of news the Commission wants to hear right now. Sadly, there’s not much detail to share, but you’ll find the complete and brief PR after the break. Now its just time to sit back and wait to see what companies we’re allowed to start hating next.
Continue reading European Commission investigating 13 companies for optical drive price fixing
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European Commission investigating 13 companies for optical drive price fixing originally appeared on Engadget on Tue, 24 Jul 2012 08:49:00 EDT. Please see our terms for use of feeds.
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Believe it or not, but that whole e-book price fixing fiasco is still an ongoing issue for the Justice Department. New York’s senior senator, Chuck Schumer wishes it wasn’t however, he simply wants the DOJ to drop the case and walk away. In a lengthy (factually questionable) op-ed in the Wall Street Journal the distinguished gentleman from the great state of New York said that a successful suit against Apple (he didn’t bother to call out the others involved) would set the e-book industry back several years and allow Amazon to dominate the market unchallenged. He also makes a broader call for the administration to develop more clear guidelines for deciding what non-merger cases to pursue. Unfortunately, we have to point out, that his argument is undercut by some questionable data referenced in the editorial. According to Schumer Amazon once owned 90 percent of the e-book market — a number that, if true, most certainly predates the release of the Nook. This is followed by an insinuation that Apple all but single-handedly toppled the retail giant with the launch of iBooks, cutting Amazons market share to just 60 percent. While the latter number sounds about right we’d hesitate to lay responsibility for that 30 point drop entirely at Apple’s feet. To dig into Schumers op-ed yourself hit up the source link.
Senator Schumer calls on DOJ to drop e-book price-fixing suit originally appeared on Engadget on Wed, 18 Jul 2012 20:09:00 EDT. Please see our terms for use of feeds.
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