Court: Apple e-book sales violated anti-trust laws
N. Venkat Venkatraman, School of Management
A U.S. District Court judge in Manhattan ruled that Apple violated antitrust laws by conspiring to raise electronic book prices, resulting in a victory for the U.S. Department of Justice and 33 states, including Massachusetts, which filed lawsuits against the technology giant, alleging price-fixing and collusion.
“The sticky point for me is that the publishers have settled with the Justice Department, partly because they may not have wanted to be drawn into long court cases. or partly because they may have wanted to support the agency model (in which publishers, rather than retailers, set prices) to break the monopoly that Amazon had on e-books. I think Apple is being held liable for creating a system that allows publishers to charge what they perceive to be fair price.”