July 10, 2013

"A federal judge on Wednesday found that Apple violated antitrust law in helping raise the retail price of e-books..."

"... saying the company 'played a central role in facilitating and executing' a conspiracy with five big publishers."
Apple’s lawyers noted at the trial that the publishers had long complained that Amazon.com’s uniform pricing of $9.99 for new e-book titles was too low.... But the Justice Department said Apple’s deal with the publishers left Amazon with no choice but to raise prices....


The Justice Department said that the publishers used their relationship with Apple, combined with the most-favored nation clause, to threaten Amazon to switch to the agency model so they could raise prices. If Amazon did not agree to those terms, the government said, the publishers intended to withhold their e-books from the retailer until the more expensive hardcover books had been on the market for awhile....

One e-mail, written by Steven P. Jobs when he was chief executive of Apple, was frequently brought up at the trial. In an e-mail conversation with [Eddy Cue, Apple’s senior vice president of Internet software and services] about the contracts negotiated with the publishers, Mr. Jobs wrote: “I can live with this, as long as they move Amazon to the agent model too for new releases for the first year. If they don’t, I’m not sure we can be competitive.”
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