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  • DoJ Could Bring Suit Against Apple This Week Over E-Book Price Fixing Investigation



    The United States Department of Justice could file suit against Apple as early as Wednesday over e-book price fixing allegations according to Reuters.

    The report sites people familiar with the matter, and claims the DoJ may file suit against Apple and settle with “several publishers.” Apple has already reportedly changed their terms and conditions to remove the Agency model of book distribution which is at the center of the DoJ’s investigation.

    The DoJ will need to prove Apple colluded with publishers to move from the wholesale model used by Amazon to the Agency model where publishers, not the resellers, set their own prices for e-books. This effectively eliminated third-party e-book sellers from the market and put a few notable reader applications and their accompanying e-book stores out of business. Jobs claimed the publishers were willing to switch to the new model because they were sick of Amazon selling Kindle e-books below cost.

    The DoJ has reportedly contacted Apple and five publishers of their intent to sue. Many of the publishers involved (Simon & Schuster, Hachette, Macmillan, HarperCollins, and Penguin) have been negotiating with the DoJ over a settlement that would allow them to avoid suit. Whether Apple has been in similar talks is not known.

    Source: Reuters Wire [via Yahoo]
    This article was originally published in forum thread: DoJ Could Bring Suit Against Apple This Week E-Book Price Fixing Investigation started by Phillip Swanson View original post
    Comments 5 Comments
    1. iLoveWindows&iPhone's Avatar
      iLoveWindows&iPhone -
      I would imagine the DOJ would have better things to do. What will this accomplish? Nothing. Apple has already been forced to back away from the Agency model, so what good does this suit do? None.
    1. unison999's Avatar
      unison999 -
      Quote Originally Posted by iLoveWindows&iPhone View Post
      I would imagine the DOJ would have better things to do. What will this accomplish? Nothing. Apple has already been forced to back away from the Agency model, so what good does this suit do? None.
      Really... You think it accomplish nothing?
      Well it forced Apple to move away from Agency model, without the investigation and lawsuit do you think that would happen? With Apple bigger than ever and without the threat of DoJ investigation and lawsuit they would bully over everyone!
    1. Jammol's Avatar
      Jammol -
      Not every company is a bully. And as far as see it, the DoJ has more pressing matters to attend to rather than ebook prices. The consumers can take care of themselves when it comes to ebooks. Simple, don't buy them. It's happened before in other markets, it can happen again. How about Department of Justice crack down on the Department of Labor for continuing to hand out unemployment to prisoners in jail!
    1. unison999's Avatar
      unison999 -
      Quote Originally Posted by Jammol View Post
      Not every company is a bully. And as far as see it, the DoJ has more pressing matters to attend to rather than ebook prices. The consumers can take care of themselves when it comes to ebooks. Simple, don't buy them. It's happened before in other markets, it can happen again. How about Department of Justice crack down on the Department of Labor for continuing to hand out unemployment to prisoners in jail!
      When the late CEO of the company uses words like "I will destroy xxx", file injunction in multiple countries against Samsung because they own the rights to square shape rounded edge tablet...

      What you are saying is like saying price fixing is ok, I will just stop having Milk or pizza or whatever I currently like.
    1. iLoveWindows&iPhone's Avatar
      iLoveWindows&iPhone -
      Quote Originally Posted by unison999 View Post
      Really... You think it accomplish nothing?
      Well it forced Apple to move away from Agency model, without the investigation and lawsuit do you think that would happen? With Apple bigger than ever and without the threat of DoJ investigation and lawsuit they would bully over everyone!
      Yes......I really believe it will accomplish nothing. My point was, Apple had already made the changes. Did the "investigation" have something to do with it...maybe, I don't really know. But I do know that the changes were made BEFORE the lawsuit being filed. So why go to court, why waste our governments time, why waste our tax payers money, if what they wanted changed has already been changed? That makes sense to you? There are no bigger, more important injustices in this country to tackle?? I could think of a few....

      Also, Apple is going to win. So the DOJ is not only wasting time and money going forward with this lawsuit, it is also going to lose, and walk away defeated and embarrassed.