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Posted by on Jul 10, 2013 in Gadgets |

Justice determines that Apple conspired to raise the price of e-books in the U.S.

Justice determines that Apple conspired to raise the price of e-books in the U.S.

(Cc) smokingapples.com / Flickr

A court of justice in the United States found that Apple conspired with publishers to raise prices of electronic books in the country, ordering a trial to determine the damages to be paid by the company. The decision is a victory for the Justice Department, which filed the case in April last year .

Judge Denise Cote said presented “compelling evidence” that violated antitrust law and played a central role in the agreement with five major publishers to eliminate price competition in the retail and raise the values. “Without Apple orchestrating this conspiracy would not have happened as it did,” says the statement.

Collusion would have begun in late 2009 and have remained in 2010, for the launch of the iPad. The plan’s objective was hurt Amazon, which at that time held 90% of the market share and buying in bulk and then sell them at low prices to boost sales of the Kindle.

Apple instead created an “agency model” in which publishers could set the price of the and pay a sales commission to the company on the block. Apple forced this model is extended to the rest of the industry, making it no more books were sold wholesale to Amazon, which prices rose from USD $ 9.99 to between $ 12.99 and USD $ 14.99 .

Only Apple came to the court, and that publishers reached a prior agreement and paid a total of USD $ 166 million .

Link: Judge says Apple conspired to raise prices on e-books (Reuters)

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