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  • DOJ Issues Punishment Recommendations for Apple


    On Friday, the United States Department of Justice announced a number of recommendations with regard to how Apple should be punished in response to having participated in an ebook price fixing scheme.

    “The court found that Apple’s illegal conduct deprived consumers of the benefits of e-book price competition and forced them to pay substantially higher prices,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Under the department’s proposed order, Apple’s illegal conduct will cease and Apple and its senior executives will be prevented from conspiring to thwart competition in the future.”

    For starters, what the DOJ wants is for Apple to stop preventing Amazon and Barnes & Noble, for example, from linking to outside ebook stores from inside of their native iOS apps. Under the proposed settlement terms, Apple would be compelled to allow those links for at least two years.

    The department’s proposal will also require Apple to terminate its existing agreements with the five major publishers with which it conspired – Hachette Book Group, HarperCollins Publishers, Holtzbrinck Publishers LLC, which does business as Macmillan, Penguin Group, and Simon & Schuster Inc. – and to refrain (for five years) from entering new e-book distribution contracts which would restrain Apple from competing on price.

    But wait... there's more. The DOJ also wants audits.

    The Department of Justice is asking the court to appoint an external monitor to ensure that Apple’s internal antitrust compliance policies are sufficient to catch anticompetitive activities before they result in harm to consumers.

    The DOJ's trial against Apple, which began on June 3, lasted for three weeks, and ended with the court determining that Apple violated Section 1 of the Sherman Act. Next Friday, August 9th, the court will hold a hearing on remedies.

    To review the complete list of recommendations published today by the DOJ, click here.

    Source: U.S. DOJ
    This article was originally published in forum thread: DOJ Issues Punishment Recommendations for Apple started by Michael Essany View original post
    Comments 19 Comments
    1. holyshnikes's Avatar
      holyshnikes -
      That's crazy strickt. I hope that's not the final say. I like using the iBooks store, and I be a little upset if they couldn't have certain books anymore for 5 years from specific companies. Crazy.
    1. REMED1AL's Avatar
      REMED1AL -
      Amazon can lose money on each e-book to thwart competition but Apple can charge retail and make all others charge reatail for a book and that is a crime?

      I hope they can win an appeal. This constant attack on Apple to make points across the board is ridiculous. Now the DOJ should go after Amazon for falsely deflating the price of e-books.
    1. tridley68's Avatar
      tridley68 -
      Quote Originally Posted by holyshnikes View Post
      That's crazy strickt. I hope that's not the final say. I like using the iBooks store, and I be a little upset if they couldn't have certain books anymore for 5 years from specific companies. Crazy.
      Leave it to the government to screw a buisness because they a a profitable company keep up the good work Apple
    1. Feanor64's Avatar
      Feanor64 -
      Quote Originally Posted by REMED1AL View Post
      Amazon can lose money on each e-book to thwart competition but Apple can charge retail for a book and that is a crime?
      It is when apple conspires with publishers to fix prices. They got greedy.
    1. tridley68's Avatar
      tridley68 -
      Quote Originally Posted by REMED1AL View Post
      Amazon can lose money on each e-book to thwart competition but Apple can charge retail for a book and that is a crime?
      nobody forced these people to buy books at retail price they did it on their own free will and now they expect Apple to pay for their mistakes
    1. bigboyz's Avatar
      bigboyz -
      WOW...beat that dead horse. I hope my iBooks is not affected like the above says it may be.
    1. Feanor64's Avatar
      Feanor64 -
      You know Apple is doing good when they try to screw the consumer and then the consumers defend them. That's what I'm talking about!
    1. REMED1AL's Avatar
      REMED1AL -
      Apple basically said give me your best price, meaning no one else gets a better price, and we'll take 30%. Not price fixing. Just an across the board rule.
    1. jOnGarrett's Avatar
      jOnGarrett -
      +1 for justce
    1. wiipro's Avatar
      wiipro -
      They will learn that I/Many Others just purchased a lot of books On Kindle
    1. LucySterling's Avatar
      LucySterling -
      I've paid for a few ebooks. I wonder if they'll give me any credit
    1. H4CK3R's Avatar
      H4CK3R -
      Quote Originally Posted by jOnGarrett View Post
      +1 for justce
      You really are just here to hate on Apple.
    1. oneduality's Avatar
      oneduality -
      Quote Originally Posted by holyshnikes View Post
      That's crazy strickt. I hope that's not the final say. I like using the iBooks store, and I be a little upset if they couldn't have certain books anymore for 5 years from specific companies. Crazy.
      That's the price they pay for using their weight to break the rules.. I'm an apple fanboy for sure but they've been being a bit shady the bigger they get, they are evolving into the Microsoft of the 90s in some ways.. with the potential to be much worse.. competition is a good thing for everyone

      Quote Originally Posted by tridley68 View Post
      nobody forced these people to buy books at retail price they did it on their own free will and now they expect Apple to pay for their mistakes
      It's still illegal.. you can defend it all you want, it doesn't make it right..

      Quote Originally Posted by Feanor64 View Post
      You know Apple is doing good when they try to screw the consumer and then the consumers defend them. That's what I'm talking about!
      Exactly! lol I notice this often .. and it's getting worse.. Apple can do no wrong in many people's eyes..
    1. smith01's Avatar
      smith01 -
      GOOD! This is exactly what Apple need. A good kick up the butt to force them in line with good work ethics.
    1. JerseyScottie's Avatar
      JerseyScottie -
      Quote Originally Posted by REMED1AL View Post
      Amazon can lose money on each e-book to thwart competition but Apple can charge retail and make all others charge reatail for a book and that is a crime?

      I hope they can win an appeal. This constant attack on Apple to make points across the board is ridiculous. Now the DOJ should go after Amazon for falsely deflating the price of e-books.
      constant attacks on apple is ridiculous ? have you seen the lawsuits apple has been filing every other week against others ?
    1. LithePanther's Avatar
      LithePanther -
      It's amazing how many people commenting here don't have a clue about anything they talk about.
    1. Stan3666's Avatar
      Stan3666 -
      is this your first time on the internet or something?
    1. kosher1's Avatar
      kosher1 -
      Apple keeps money over seas not to pay taxes, do the gov. gets them in this type of ways
    1. holyshnikes's Avatar
      holyshnikes -
      I think there should be a penalty for breaking the law, but allowing them to not make deals with publishing companies for 5 years is a bit much. Make them pay a hefty fine. Don't take away from a key piece of their business though. iBooks is a great part of the iPad and iPhone. If they take books away from them it's stunting not only the company, but the consumers that use those books. As a consumer, I'm worried now about my limited book selection to come. In an industry that's changing daily, 5 years from now who knows what better advancements we'd have on these books...