US e-book showdown looms for Apple
Print Edition
Apple Inc is headed for a showdown with the United States government and dozens of states, which on Friday urged that tough new restrictions be imposed on the company for illegally conspiring to raise e-book prices.
The changes proposed by the US Department of Justice and 33 US states and territories are designed to stop Apple from committing further antitrust violations after US District Judge Denise Cote said on July 10 that Apple had a “central role” in a conspiracy with five major publishers to raise e-book prices.
But the proposed changes extend beyond e-books, potentially limiting Apple’s ability to negotiate for such content as movies, music and TV shows, and increasing regulatory oversight of other business areas such as its App Store.
In a court filing, Apple called the proposed injunction a “draconian and punitive intrusion” into its business that will hurt consumers and competition.
Cote will hear arguments at an August 9 hearing in her Manhattan courtroom. A damages trial might follow.
Despite Apple’s protests, analysts have said the bigger issue for the Cupertino, California-based company in this case might be damage to its reputation, not financial harm. Amazon.com Inc commands about 65 percent of the US e-books market, while Apple’s share has been estimated in the single digits.
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