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  • Apple's Request to Dismiss E-book Class Action Lawsuit Denied

    Apple recently received a legal slap on Wednesday when U.S. District Judge Denise Cote rejected Apple’s request to dismiss a class action lawsuit against Apple and five publishers. Judge Cote scoffed at the idea that Apple and the publishers acted independently when it comes to what’s known as agency pricing, their defense to the charges that they were price-fixing ebooks. Not only did she deny the request for dismissing the lawsuit, she accused Steve jobs of being the center of it all. Parts of the judge's statement mentioned the following:

    In short, Apple did not try to earn money off of eBooks by competing with other retailers in an open market; rather, Apple 'accomplished this goal by [helping] the suppliers to collude, rather than to compete independently.

    Finally, the fact that Apple might have had different motivations for joining the conspiracy, and was involved in only a portion of it, does not undermine the existence of the conspiracy itself or Apple's role as a participant.
    Cote also cited multiple ongoing investigations against Apple, including the antitrust suit filed by the U.S. Department of Justice, as other reasons to maintain this class action lawsuit. This move could possibly work against Apple in the future, we’ll have to just wait and see what ends up happening.

    Source: paidContent
    This article was originally published in forum thread: Apple's Request to Dismiss E-book Class Action Lawsuit Denied started by Akshay Masand View original post
    Comments 5 Comments
    1. Mrteacup's Avatar
      Mrteacup -
      This is ridiculous! Changing pricing has and always will affect other competitors but theres nothing wrong with it!!
    1. Jahooba's Avatar
      Jahooba -
      Of course they were price fixing. Jobs never tried to hide it - in fact he seemed quite proud of the fact that he was helping the publishing industry (and subsequently taking 30%). You could say that Apple wasn't price-fixing, that they were just urging someone else to price-fix, but if you think about it that's tantamount to the same thing. If you don't rob the bank but stand on the sidelines and direct others on how to do it, you're just as guilty, even if you're not holding the gun.

      Apple was of course trying to bend the rules - it's kinda what they do. Apple has a goal and a 'ends justify the means' mentality, and anything that gets in the way can be handled with lots of money.

      Ultimately Apple has nothing to lose by losing this case because it's not their content - but the publishing industry will get slapped down pretty hard if found guilty.
    1. cmwade77's Avatar
      cmwade77 -
      Quote Originally Posted by Mrteacup View Post
      This is ridiculous! Changing pricing has and always will affect other competitors but theres nothing wrong with it!!
      The problem here is simple, Apple says you can sell with us, but you can't sell anywhere else for less, even if they charge you less. This is the part that is illegal.

      Here's an example:
      Apple says we will take 30%, now let's say that Amazon says we will only take 10%. I would then want to sell my book for $10 on Apple or $9 on Amazon. Why? Well, while my overall price would be cheaper on Amazon, I would actually be making more profit per book than on Apple.

      But Apple says that if you sell with us for $10, that is the cheapest you can sell for anywhere.
    1. larke's Avatar
      larke -
      Actually, as soon as iBooks came out, Amazon no longer sold kindle editions at around 3.99 or cheaper rather than the 7.99 the book will sell in the store. Right now the ebook price of a book is the SAME as buying it in the store unless you happen across a sale. WHY should it be the same, there is no printing and really no cost other than some tiny fees of accepting payment. There is a total conspiracy here on ebook price fixing. I really hope the judge asks them "wtf" cause they should just not make them the same price. Why buy a Kindle or a Nook when its going to cost the same to get ebooks or magazines. You're not saving any money you're spending more.
    1. unison999's Avatar
      unison999 -
      give props to the judge here.
      I hope it is not just a slap on the wrist with only a couple of million dollars fine.
      Would be awesome to punish Apple by refund the 30% Apple received from all ebook sales to customer, then allow customer to return iPad 1~3 for full refund because they may not have bought iPad and gone with cheaper Kindle for cheaper ebooks. Doubt it would go to this extreme but it would definitely teach Apple not to try anything like this ever again. (i.e. Apple's TV should be coming out soon, they may try this again with TV shows since it proved profitable with the ebooks already).