A federal judge found Apple, Inc. guilty of conspiring to fix prices of ebooks sold online on Wednesday, ending a longstanding, high-profile case initiated by the US Department of Justice against the tech giant. The result is a major win for the DOJ, but what happens next? According to reports, Apple has stated it would appeal the decision and denied any wrongdoing; Apple spokesperson Tom Neumayr called the allegations against the tech giant “false” and insisted Apple introduced necessary innovation into the market at the time the DOJ accuses the company of antitrust violations. Further, the presiding judge, US District Judge Denise Cote, said she would schedule a damages trial for the 33 states’ attorneys general, which also brought the case against Apple along with federal regulators.
While the nation awaits to see the exact repercussions of the lawsuit, analysis is already swarming around the case’s outcome. According to some experts, the lawsuit is a reminder of the hazards of technological innovation. Yale Law School antitrust professor George Priest told Forbes said he is not certain the decision will stand, and described the new method of selling ebooks invented by Apple is “a good thing.”
Others say that while consumers may not see too much of a difference in ebooks prices, Apple could be in for major changes in the way the company does business. According to author Laura Hazard Owen at PaidContent, Apple could possibly be barred from including most-favored-nation clauses in its contracts with any publishers in the future. Or, said Owen, the company could be forced to allow ebooks sellers to sell products through the Apple store without the tech firm taking the typical 30 percent cut it takes from in-app purchases; the DOJ has suggested this plan.
Full Content: PaidContent, Forbes and Bloomberg
Click here to view CPI’s special newsletter on the ebooks decision
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
US House Passes Bill That Could Lead to TikTok Ban
Apr 23, 2024 by
CPI
ADM CFO Resigns Amidst DOJ Investigation into Accounting Issues
Apr 23, 2024 by
CPI
FTC Throws the Bag: Tapestry’s Capri Deal Blocked Over Market Monopoly Concerns
Apr 22, 2024 by
CPI
Italy’s Antitrust Authority Investigates Enel’s Communication of Energy Price Hikes
Apr 22, 2024 by
CPI
UK Data Regulator Uncovers Flaws in Google’s Privacy Sandbox Proposal
Apr 22, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI