Apple shoots down allegations of electronic book 'price fixing'

   Apr 13, 3:53 pm

Washington, Apr 13 (ANI): Apple has denied allegations of the US Department of Justice (DoJ) that it schemed with publishers over the pricing of their electronic book, iBookstore and said the charges were 'simply not true'.

"The launch of the iBookstore in 2010 fostered innovation and competition, breaking Amazon's monopolistic grip on the publishing industry," The Telegraph quoted Apple's spokesperson, Natalie Kerris, as saying.

"Just as we have allowed developers to set prices on the App Store, publishers set prices on the iBookstore," Kerris said, defending the fact that the current pricing structure of the electronic book is similar to Apple's mobile software store.

The US Department of Justice (DoJ) has sued the technology giant for reportedly violating antitrust laws with five major book publishers: HarperCollins, Hachette, Penguin Group, Macmillan and Simon and Schuster.

The DoJ claimed that in Spetember 2008 and January 2009, Apple chief executives had met with the publishers for a series of dinners in a private room at a New York restaurant, where they are alleged to have discussed "business matters", and on another occasion, they met with a sixth publisher, where they "discussed the growth of e-books and complained about Amazon's role in that growth".

The reports said that in 2010 the five publishers, accused of colluding with Apple, had signed up to the so-called "agency model" of pricing, under which they would command the price of an ebook as long as they give 30pc of the revenues to the retailer.

The DoJ said that publishers saw the rise on e-books, and particularly Amazon's price discounting, as a substantial challenge to their traditional business model and to tackle this, they "teamed up with Apple, which shared the same goal of restraining retail price competition." (ANI)

Every six tourists creates one job in Nepal: Study Aug 22, 4:25 pm
Kathmandu, Aug.22 (ANI): One job is created in Nepal with the help of six tourists, a study has said.
Full Story
Bright future for smartphone market in India Aug 21, 1:07 pm
Washington, Aug 21 (ANI): Smartphone market in India has seen a healthy growth with shipments revving up 84 percent, year over year, and an 11 percent per quarter.
Full Story
Bank of America set to seal record $17 bln deal with Justice Department over faulty mortgages Aug 21, 11:55 am
Washington, Aug 21 (ANI): A report has revealed that the final terms for a record 17 billion dollars settlement between the Bank of America and the Department of Justice have almost been finalized. The United States' second largest bank has been held in the dock by the Justice department for selling faulty mortgage securities that ultimately contributed to the 2008 global financial crisis.
Full Story
Standard Chartered agrees to pay $300m penalty to NY regulator Aug 20, 1:45 pm
London, Aug 20 (ANI): Following failure to improve money laundering controls, Standard Chartered has reportedly agreed to pay 300 million dollars (180m pound) in penalty to New York's top banking regulator.
Full Story
Comments

LATEST STORIES
TOP VIDEO STORIES
PHOTO GALLERY