Menu
Supreme Court denies Apple appeal in e-books price fixing case

Supreme Court denies Apple appeal in e-books price fixing case

The company will pay $450 million in a settlement, with most of the money going to e-book buyers

Apple will pay US$450 million as a settlement for e-book price fixing after the U.S. Supreme Court declined to hear the company's appeal of a lower court's antitrust ruling.

The Supreme Court's decision Monday ends Apple's appeal of the antitrust case against the company and five book publishers and upholds a June 2015 antitrust ruling at the U.S. Court of Appeals for the Second Circuit.

Apple had agreed in 2014 to pay a $450 million settlement in the case, brought by the Department of Justice and 33 states and territories in 2012, if the company did not win its appeals. Late last year, the company asked the Supreme Court to take up the case.

The DOJ accused Apple, Hachette Book Group, HarperCollins Publishers, Macmillan, Penguin Group and Simon & Schuster of conspiring to raise prices in retaliation for Amazon.com pricing most e-books at $9.99 beginning in late 2007.

Apple and the publishers conspired to set e-book prices at $12.99 and $16.99, the DOJ alleged. In early 2010, publishers agreed to shift to a new pricing model where they set the prices for e-books, instead of retailers, the agency charged.

Most of the money from Apple -- $400 million -- plus another $166 million settlement from the publishers, will go back to e-book purchasers, the DOJ said. The other $50 million in Apple's settlement covers lawyers' fees and payments to states.

Most e-book purchasers will receive reimbursement for the higher prices they paid through automatic credits at their e-book retailers, the agency said in a press release.

"Apple’s liability for knowingly conspiring with book publishers to raise the prices of e-books is settled once and for all," Assistant Attorney General Bill Baer of the DOJ's Antitrust Division, said in a statement. "And consumers will be made whole."

Apple did not immediately response to a request for comments on the Supreme Court's denial of its appeal.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments