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)

Android co-founder Andy Rubin leaves Google to lead 'Incubator' Oct 31, 3:51 pm
Washington, Oct 31 (ANI): Google's Andy Rubin, the founder of the most widely used operating software Android, is leaving the search engine giant to lead a startup named Incubator.
Full Story
Xiaomi becomes third largest smartphone maker in just three years Oct 31, 3:51 pm
Washington, Oct 31 (ANI): Xiaomi Corp has made it to the top-three smartphone making companies in just three years of launch, outselling rivals with low-budget smartphones packed with high-end features.
Full Story
LinkedIn's Q3 sales beat estimates with 568M dollar sales Oct 31, 3:51 pm
Washington, Oct 31 (ANI): LinkedIn reported its results for the third quarter of the year, beating the estimates on sales 568 million dollars, up 45 percent compared to a year ago and sales of 393 million dollars and non-GAAP earnings per share of 0.52 dollar.
Full Story
Samsung to reform smartphone product line post dire profit report Oct 31, 3:51 pm
Washington, Oct 31 (ANI): Samsung has reported that its operating profit has come down 60 percent, and income from sales is down by 20 percent, leading the company to fundamentally reforming its smartphones.
Full Story
Comments

LATEST STORIES
TOP VIDEO STORIES
PHOTO GALLERY