pricefixing
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Supreme Court rules against Apple in App Store price fixing case
The Supreme Court has ruled against Apple in a long-standing case over price fixing in the App Store, in a decision that allows iPhone owners to proceed with a lawsuit against the company. The court heard arguments in the case in November, and the decision was expected sometime this spring.
Supreme Court hears arguments in Apple App Store price fixing suit
Apple now has its last chance to fend off a lawsuit accusing it of price fixing on the App Store. The US Supreme Court is hearing arguments from Apple on November 26th as the company rejects claims that it uses its absolute control of iOS app downloads to keep prices high and take a 30 percent cut of each sale. In a filing, Apple portrayed itself as just a "sales and distribution agent" and said that developers were ultimately the ones who set the final price. It also said that objections to the 30 percent cut should come from developers, since they're the ones who pay directly rather than users.
Supreme Court will hear Apple's bid to stop price fixing suit
Apple will have one more shot at avoiding a proposed class-action lawsuit accusing it of price fixing with the App Store. The US Supreme Court has agreed to hear Apple's appeal of a ruling that would resurrect the antitrust case, which asserted that the company was abusing its App Store-only requirement to keep prices higher and take a 30 percent cut. It's not yet clear when the court will handle the challenge.
Russia finds Apple guilty of fixing iPhone prices
Google isn't the only American company facing regulatory trouble in Russia. The country's antitrust body has ruled that Apple is guilty of fixing prices for iPhone 5 and 6 variants at 16 local retailers. Reportedly, the company tracked prices at these stores and would ask them to raise the price if it was ever deemed "unsuitable." If they didn't comply, Apple supposedly had the authority to terminate their reseller deals without so much as an explanation.
ASUS is being investigated for price manipulation in Europe
In one of several antitrust investigations launched today, the European Commission has begun probing tech brands ASUS, Denon & Marantz, Philips and Pioneer for suspected price manipulation. As the press release explains, the Commission believes the companies may have broken competition rules by stopping online retailers in Europe from setting their own prices for products including household appliances, laptops and hi-fi equipment. The companies also stand accused of potentially influencing price tags on a broader scale, since many retailers use software that automatically changes product pricing based on what competitors are offering.
Apple e-book price fixing case won't reach the Supreme Court
Apple's last shot at avoiding a $450 million e-book price fixing settlement just went out the window. The US Supreme Court has declined to hear Apple's challenge of an appeals court decision that left the company on the hook for allegedly conspiring with publishers to raise digital book prices. The decision won't have much of an impact on Apple's day-to-day business (the court-approved antitrust monitor is no longer watching it like a hawk). Still, it's a symbolic loss for a tech giant that maintains it did nothing wrong.
Apple to pay $450 million in e-book price-fixing suit
Apple conspired with publishers to artificially raise the price of e-books, the Second US Circuit Court of Appeals in Manhattan ruled today, upholding a verdict from 2013. Now that the company has lost its appeal, Apple is expected to pay $450 million, most of it to e-book customers. Apple agreed to a $450 million settlement in 2014 as part of the appeals process: If Apple had won in today's ruling, it would have had to pay just $70 million ($50 million of that to customers) or it could have been off the hook entirely.
Apple agrees to $450 million dollar settlement in e-book antitrust case
Apple has resisted settling with the government over charges that it conspired with publishers to fix e-book prices. While its alleged co-conspirators have already opted to pay up and move on, Cupertino has been steadfast in maintaining its innocence. Though, it seems the tech giant has grown weary of the constant court battles and is ready to settle. The Department of Justice and Apple have a agreed to a preliminary settlement of $450 million, $400 million of which would be set aside and returned to consumers. There is still an appeal pending, however, which could either reduce the penalty or eliminate the payment entirely. But if Apple loses the appeal (and its success in court has been mixed at best in this case) it will be on the hook for the entire $450 million.
Taiwanese FTC fines Apple for interfering in iPhone handset and contract pricing
Taiwan's Fair Trade Commission has ruled that Apple's been naughty rather than nice this holiday week, fining it for 20 million Taiwan dollars (around $670,000) after it specified pricing to iPhone carriers. Once Apple sells distribution rights to an iPhone stockist, it has no right to dictate how much carriers and companies sell the devices for. According to the FTC's statement: "Through the email correspondence between Apple and these three telecom companies we discovered the companies submit their pricing plans to Apple to be approved or confirmed before the products hit the market." The iPhone maker will be able to appeal the ruling, although according to the WSJ, it could face a fine of up to $50 million Taiwan dollars if it doesn't comply.
Judge orders Apple to stop making special pacts with e-book publishers
After plenty of tussling over the DoJ's proposed injunction against Apple, preventing it from striking untoward pricing deals with e-book publishers, a judge at the Southern District Court of New York has today laid down the law. The final injunction prevents Apple from setting prices with any of its partners for terms of between two and four years, with the exact term depending on which publisher it's working with and how long they originally took to settle with the DoJ -- which means Apple's relationship with Macmillan faces the harshest restriction. Crucially, Apple also won't be able to make "most favored nation" pacts, in which e-book prices and discounts are set across a range of publishers or retailers. This particular bit of the injunction will last for five years -- a lengthy period of time in this industry, and one that can be extended by the court if it sees fit, but hardly the ten-year term that Apple's lawyers initially feared. Finally, another key clause prevents Apple from doing business with publishers behind closed doors. For the next two years, Cupertino will have to bring in an independent third party to serve as an "Antitrust compliance officer" in all deals. Sounds humiliating, perhaps, but again, given the relatively short duration, it could have been a lot worse.
DOJ offers to cut injunction time in Apple e-book case, stays firm on key points
The US Justice Department was insistent that its proposed injunction against Apple for alleged e-book price fixing was the proper remedy earlier this month, but it's now willing to budge on that somewhat. As Reuters reports, the DOJ has offered to cut the length of the injunction from ten to five years, and ease the restrictions on Apple striking new deals with book publishers -- it now suggests Apple hold staggered negotiations with publishers starting in two years. The DOJ continues to insist on the need for an external monitor to keep an eye on the company, however, which remains a non-starter for Apple. The company also drew some particularly harsh criticism from the DOJ, which stated in a filing that "Apple wants to continue business as usual, regardless of the antitrust laws," and that "this court should have no confidence that Apple on its own effectively can ensure that its illegal conduct will not be repeated." For its part, Apple isn't commenting on the DOJ's latest proposal.
Judge denies Apple's request to suspend e-book antitrust ruling
Apple, in its ongoing battle over an e-book price fixing scandal, has been dealt yet another setback. Last month, Judge Denise Cote ruled that Apple had violated antitrust laws in conspiring with publishers to raise e-book prices. Cupertino asked for a temporary suspension of her ruling while it sought to appeal the penalties leveled against it, but today Judge Cote refused that request. The company maintains its innocence, and its co-defendants have jumped to its defense in the wake of a strong restrictions handed down by the Justice Department. But, increasingly, it appears that Apple is fighting a losing battle. We're sure that there are still tricks in its legal arsenal, but there is little indication that Cupertino will be able to avoid terminating its existing agreements with publishers and will be barred from engaging in agency pricing before the end of the DoJ's five-year ban.
DOJ defends Apple e-book price fixing injunction, says publishers had it easy
The US Department of Justice isn't buying publishers' arguments that proposed injunctions against Apple for alleged e-book price fixing are excessive and contradictory. DOJ attorney Lawrence Buterman claims in a response letter that the penalties against Apple are necessarily harsher, since it didn't settle the accusations like its reported co-conspirators. The group objection even justifies Apple's punishment, Buterman claims; it suggests that publishers are just waiting until the end of a two-year ban on agency pricing to raise prices once again. The five-year restriction imposed on Apple could keep prices down for longer, the lawyer says. Apple, meanwhile, isn't done with its objections. In addition to an earlier request for a stay on proceedings pending an appeal, it now contends that the court excluded or ignored testimony while giving Amazon and Google witnesses too much credibility. The company will present more of its opinion at a conference today with both the DOJ and the presiding judge, but we're not expecting a quick resolution -- neither side is budging at this stage.
Penguin offers to end ebook deals with Apple
Apple's ebook price-fixing cases are now in the settlement stage in the US and Europe, and the latest word from the EU is that Penguin has become the last publisher to offer to end ebook pricing restriction deals with Apple. In December of 2012, Apple and the other four publishers named in the European Commission price fixing case agreed to settle by allowing retailers to set their own prices or discounts for the next two years and drop the "most-favored nation" contracts for five years. With this latest move by Penguin, all of the parties involved have now settled the concerns of the European Commission and this chapter of Apple history comes to a close. The damages to be levied against Apple in the US Department of Justice price-fixing case settlement have yet to be decided.
Daily Update for July 25, 2013
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
EU regulator accepts Penguin offer to end dodgy e-book deals with Apple
After the European Commission accepted offers from Apple and four publishers to free up e-book pricing restrictions in December 2012, it's now accepted Penguin's commitment to do the same. Much like Penguin's vow to the US DOJ, it will end its agency agreements with Apple and other retailers, and "most-favored nation" clauses will be absent from any new deals struck over the next five years. Most importantly, e-book retailers will now be able to control prices and discounts of Penguin's catalog for two years. This legally binding pledge essentially brings an end to EC's "competitive concerns," as all involved in the original price-fixing investigation have now settled up.
Barnes & Noble VP delivers a bruising blow to DOJ case against Apple
Apple received a boost in its defense against the Department of Justice allegations about e-book price-fixing yesterday from a company that had already settled in the case: Barnes & Noble. The bookseller's Vice President of Digital Content, Theresa Horner, told the court that her company was in the process of negotiating agency pricing deals with publishers well before Apple came into the e-book market. The DOJ has repeatedly attempted to paint Apple as the nefarious ringleader conspiring with book publishers to raise prices on e-books. During her court appearance, Horner essentially shut down that argument by noting that Apple had nothing to do with Barnes & Noble talking with book publishers about agency pricing, which means that publishers set book prices rather than resellers. Barnes & Noble CEO William Lynch apparently proposed the idea to publishing companies in late 2009, before Apple even started negotiations with the same companies. Lynch felt that agency pricing was a must if his company was to compete and make money against Amazon's Kindle bookstore. The DOJ's case against Apple has received other blows. Penguin CEO David Shanks told the court that Apple seemed indifferent to the e-book market and was going to walk away from the market if it couldn't ink deals with publishers. Other evidence shows that even Amazon was working on the same agency pricing deals with publishers, with identical price-matching terms (i.e., other retailers couldn't sell e-books at lower prices) to what Apple and Barnes & Noble eventually achieved with their deals. Judge Denise Cote heard the case and felt before the trial that the DOJ had a strong case against Apple. Yesterday, at a point when Apple was going to demonstrate the "page curl" feature devised by Steve Jobs, Cote interrupted by saying "I have an iPad. I love my iPad. I have seen this feature." In contrast to her start-of-trial comments, Cote noted yesterday, "It seems to me the issues have somewhat shifted during the course of the trial. Things change. People have to stay nimble. I'm looking forward to understanding where we are now." The parties in the case deliver their summations today, and a ruling from the bench will be forthcoming in the future -- possibly as long as two months from now.
Apple tells price fixing courtroom it owns 20 percent of the e-book market
Apple director Keith Moerer said in court on Tuesday that the company holds about 20 percent of the US e-book market, double the size commonly assumed. The revelation came after the Department of Justice tried to bolster its price fixing case against the company by asserting that "Apple forgot to focus on customers, that's why the iBookstore is a failure." Moerer responded that the online store has consistently held a 20 percent share since just after launching, adding that "sales grew 100 percent last year at the iBookstore and it had over 100 million customers." The government will continue trying to prove that Apple colluded with publishers like Macmillan and Harper Collins -- who settled out of court -- with testimony later today from Senior VP Eddy Cue.
The Steve Jobs email that has the DOJ's interest
TUAW has covered the US Department of Justice price-fixing case against Apple for the past several years. Now an email sent from former Apple CEO Steve Jobs to James Murdoch of News Corporation (parent company of HarperCollins publishers) is being interpreted by the DOJ as showing that Apple and HarperCollins conspired with other publishers to raise e-book prices. John Paczkowski at AllThingsD pointed out yesterday that the DOJ might be taking the email out of context. The seemingly incriminating portion of Jobs' email is this: "Throw in with Apple and see if we can all make a go of this to create a real mainstream e-books market at $12.99 and $14.99." As Paczkowski points out, reading the entire email, it appears that Jobs was simply using those price points as "price caps in broader pricing tiers" and that he "openly concedes that the agency model he's proposing may well fail." Jobs wrote, "We simply don't think the e-book market can be successful with pricing higher than $12.99 or $14.99. Heck, Amazon is selling these books at $9.99, and who knows, maybe they are right and we will fail even at $12.99. But we're willing to try at the prices we proposed. We are not willing to try at higher prices, because we are pretty sure we'll all fail." Paczkowski notes that this is just "one piece of evidence in a much larger case," but that the DOJ appears to have "cherry-picked a quote for maximum effect." The full exhibit from which the Jobs email was taken is included below. Jobs-Murdoch-exchange var docstoc_docid="156857315";var docstoc_title="Jobs-Murdoch-exchange";var docstoc_urltitle="Jobs-Murdoch-exchange";
Daily Update for March 22, 2013
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
