Apple Could Face Harsh Penalties In E-Book Case

by Categorized: Apple, Government Date:

The U.S. Justice Department announced it’s proposal for penalties against Apple Friday after the company was found to have fixed prices and restricted competition in the e-book market earlier this month.

Reuters reports the government is asking U.S. District Judge Denise Cote in Manhattan to penalize Apple by asking it to cancel existing agreements with the publishers, submit to a five year  ban from entering e-book distribution contracts which kept consumer prices inflated.

Publishers Hachette Book Group Inc, HarperCollins Publishers LLC, Penguin Group (USA) Inc,  Simon & Schuster Inc and Macmillan settled with the government.

Apple would not be able to make deals with content providers of video and music for iPad and iPhones which would increase the prices at which competitors sold the same content.

Apple does not have a significant share of the e-book market according to analysts quoted in the article.

Competitors Barnes & Noble and Amazon would have to be given the opportunity to have a link within their apps that would allow customers to check for a lower price.

Apple is planning to appeal the verdict.

 

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