Apple & E-Book Publishers Being Sued By Justice Dept.

Apple, along with five of the nation’s largest publishing houses, are being sued by the U.S. Department of allegedly conspiring by increasing the price of e-books in a bid to take  control of the market from Amazon and other e-books sellers. This price fixing, forced consumers to pay more than $100 million in the past two years for titles, by adding $2,$3 sometimes as much as $5 to the price each e-book.

The lawsuit was filed today in U.S. District Court in New York, and evidence shows an industry needing to show a profit while all around them technology and fierce marketing from online retailers were changing. Through phone, e-mails and dinners at fancy restaurants, the top publishing houses top execs colluded together to take Amazon niche they had built up through e-book sales.

“We allege that these executives knew full well what they were doing,” acting Assistant Attorney General Sharis Pozen said.

Among these top five houses, not one has admitted guilt, but three of these publishers–Hachette, HarperCollins and Simon & Schuster– have agreed to settle the case. Apple contests these charges, gearing up for a major fight with Washington. And Macmillan and Penguin stated it would not be settling.  Macmillan CEO John Sargent, “It is also hard to settle a lawsuit when you know that you have done no wrong”.

Sources:

Bloomberg

Politico