July 17, 2013

APPLE ANTI-TRUST CASE ENDS

iPad-iBooks
Apple, a large player in the electronic book market, lost its case in a scandalous price-fixing case last Wednesday when a federal judge ruled that Apple–in conjunction with five major book publishers–violated U.S. anti-trust laws.

Apple plans to appeal the case. The company was accused of colluding with publishers, CBS Corp. ‘s (CBS) Simon & Schuster, News Corp. ‘s (NWS) HarperCollins, Lagardere’s Hachette Book Group, Pearson’s Penguin Group and Macmillan Publishers, beginning in 2009 before the launch of the iPad.

The result of the federal ruling will benefit e-book readers everywhere. Evidence from the trial revealed an 18 percent price hike, on average, for the aforementioned publishers as a result of the collusion. In some cases, e-book prices rose to $12.99 or $14.99 instead of the base price of $9.99 offered by Amazon previously.

Apparently, Apple investors shrugged off the verdict though shares were flat in morning trading on the stock market today. Amazon shares were down a fraction.

Read the full article here

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