pricefixing
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Jobs biographer Walter Isaacson needn't testify in e-book case
Steve Jobs' biographer Walter Isaacson has been dropped from the upcoming Apple e-books price-fixing case, according to Paid Content. Class-action lawyers had originally subpoenaed Isaacson to submit his notes from interviews with Jobs regarding the iBookstore. However, Isaacson refused to do so, noting a New York law that allows a journalist to shield their sources. But new court documents filed last week reveal both parties have agreed to drop Isaacson -- and his notes -- from the case. The lawsuit alleges Apple -- and Jobs in particular -- colluded with publishers to inflate e-book prices. In September of last year Apple agreed to stop e-book price fixing in Europe. The e-book price fixing case in the US commences June 3.
Macmillan settles up with DoJ, Apple now stands alone in e-book price fixing case
It took awhile to read the writing on the wall, but Macmillan has finally settled the antitrust lawsuit brought by the US Justice Department for the publisher's alleged e-book price fixing. In doing so, Macmillan joins Hachette, HarperCollins, Simon & Schuster and Penguin in choosing not to go to trial against the DoJ's lawyers. It's an about-face from Macmillan's initial stance in settlement negotiations, when it claimed that the DoJ's terms were far too onerous. Why settle now? Company CEO John Sargent told the Wall Street Journal that the company changed its tune not because it was guilty, but "because the potential penalties became too high to risk even the possibility of an unfavorable outcome." Should the settlement terms be approved by the court, retailers will be able to discount Macmillan titles, regardless of existing contracts, for 23 months starting from December 18, 2012. With Macmillan bowing out, Apple remains as Uncle Sam's lone legal opponent at the trial scheduled in June. Given Apple's staunch denial of wrongdoing and general willingness to litigate, it seems we may be in for some more legal fireworks this summer.
China fines LG Display, Samsung and others over alleged price fixing
Companies embroiled in display price fixing scandals aren't out of the woods just yet. China's National Development and Reform Commission has just fined six manufacturers ¥353 million ($56.7 million) for allegedly colluding on LCD prices, including Korean heavyweights LG Display and Samsung as well as Taiwan-based AU Optronics, Chungwa Picture Tubes, HannStar and Innolux. The accusations behind the latest penalty aren't quite the same as in other countries, but they share a familiar story: China believes the firms agreed to keep costs artificially high between 2001 and 2006, making ¥208 million yuan ($33.4 million) in undeserved profit. While the immediate fiscal damage will be light when it's spread across several companies, it adds to punishment that has already ranged into the hundreds of millions of dollars.
Former senior manager at AU Optronics found guilty of involvement in LCD price fixing
The name of Taiwanese display manufacturer AU Optronics is rarely out of the courts when LCD price fixing is involved, and now another of the company's heavyweights has been convicted for the part he played in such crimes. The US Department of Justice announced that Shiu Lung Leung, formerly a senior manager at AUO, has been found guilty for his role in a "conspiracy" which artificially raised the prices of LCD-packing gear in the US. From 2002 through to 2006, Leung is said to have been privy to secret monthly meetings with his company's competitors, where they discussed price fixing (and presumably, sinister cat stroking) in "hotel conference rooms, karaoke bars and tea rooms." Leung joins a couple of other AUO execs and many from different companies who've received similar judgments, and when sentenced, could face up to a dime in the slammer and a hefty fine -- although we doubt any of that cash will be put towards a long-overdue rebate.
Penguin joins publishers settling with the DOJ over e-book prices
The US Department of Justice may have only reached settlements with three of the five major publishers it had sued for allegedly fixing e-book prices, but it's improving its track record through a new deal with Penguin. Like its peers, the firm has agreed to end any pacts that prevent it from lowering e-book prices, whether the arrangements are with Apple or any other store operator. While Penguin hasn't immediately commented on its change of heart, a company spokesperson made clear to The Guardian that an EU settlement was for "clearing the decks" ahead of a joint venture with Random House -- Penguin didn't want government scrutiny looming over its union. The truce leaves Macmillan as the last book giant still slated to go to court in the US, and it may not get much support when Apple was part of the European agreement.
Amazon wins EU e-book pricing battle with Apple and major book publishers
The European Union has accepted an offer from Apple and four major publishers to reduce pricing restrictions on content offered at Amazon and other book-sellers. After being caught out by the EU, we heard that the offer was likely to be adopted last month, and the commission has now confirmed the settlement which, according to them, "will restore normal competitive conditions in this new and fast-moving market, to the benefit of the buyers and readers of e-books." The new setup will let retailers set prices or discounts for two years and also drop "most-favored nation" contracts for five years. This clause had previously stopped Simon & Schuster, HarperCollins, Lagardere SCA's Hachette Livre and Macmillan from striking deals to sell e-books at other retailers at prices lower than those offered in Apple's own bookstore -- the "favored nation"
Samsung, Philips, LG and others reportedly set to face EU regulatory fines for CRT price fixing
Samsung SDI, Philips, LG, Technicolor, Panasonic and Toshiba are said to be facing heavy fines from the European Commission due to alleged involvement in a TV cathode-ray tube price fixing ring. According to Reuters, the fines will be announced on November 28th and can reach up to ten percent of the turnover during the period which the cartel was said to have ran. Based on 2011 revenues, LG could be fined up to $5 billion, while Dutch-based Philips would top out at around $2.9 billion. While the fines aren't expected to reach such heights, it will definitely take more than a few Black Friday blowout sales to recover this type of coin.
EU regulators to accept Apple and book publishers' offer of cheaper e-books
According to Reuters, EU regulators look likely to accept an offer from Apple and a handful of publishers, including Simon & Schuster, HarperCollins, Hachette Livre and Macmillan. The assembled publishers propose that they will allow retailers (including Amazon) to sell e-books cheaper than Apple currently does. The move will attempt to end the EU's anti-trust investigation that looked into the publishers' e-book pricing model that unfairly affected retailers' ability to compete with Apple's own electronic book collection.
Apple and publishers offer deal to put price fixing scandal behind them in EU
In the US, the e-book price fixing scandal appears to be winding towards its inevitable conclusion. Many of the publishers settled with the DOJ right off the bat, and now the states themselves have gotten three publishing houses to cough up $69 million in their own agreement. (Of course, Apple, Macmillan and Penguin have all decided to go the trial route, but we'll have to wait till next year to see how that plays out.) In Europe, the battle is still raging on, but Reuters is reporting that the accused are offering concessions in a bid to put the antitrust allegations behind them. The only name missing from the list is Penguin, which may or may not be part of the plea deal. Not all the details of the proposals have been revealed yet, and there's no guarantee the commission will accept them. The heart of the settlement, however, would involve allowing Amazon to sell e-books at a discounted price for two years. Would cheaper Kindle books be good, clean fun for the whole family? Sure, but it certainly pales in comparison to the potential penalties if Apple and their publishing partners go to trial.
States reach $69 million settlement with three publishers in e-book price fixing case
When the US Department of Justice sued Apple and five major book publishers over alleged e-book price rigging, it immediately became clear that a few of these companies would do just about anything to avoid trial. That same day, three of the publishers -- HarperCollins, Simon & Schuster and Hachette -- elected to settle with the DoJ. Now, those same three publishers have reached an agreement in 49 states (all but Minnesota), wherein consumers will receive a combined $69 million in compensation. Specifically, the payout applies to people who bought agency-priced e-books between April 1, 2010 and May 21, 2012. Interestingly, the payout includes folks who bought e-books from Macmillan and Penguin, even though those two publishers aren't settling. As for making sure people get paid, Amazon, Barnes & Noble, Google, Sony, Apple and Kobo have agreed to identify and contact affected customers. According to ABC News, most of these retailers will give customers the option of receiving a check or a credit toward future purchases. Sony, meanwhile, will automatically issue checks, while Google will direct customers to an online submission form where they can file a claim. Whatever the method, payments are expected to begin 30 days after the settlement is approved. The DoJ settlement, which is separate from the agreement with the 49 states, is still awaiting clearance.
Judge: Walter Isaacson doesn't have to hand over biography notes
It's beginning to look like we'll need to change our name to "The Unofficial Apple Legal Weblog," since we have a story of one more case involving Apple. This story is in reference to a class action suit regarding alleged price fixing on ebooks by Apple. Lawyers for the plaintiffs have requested access to Steve Jobs biographer Walter Isaacson's private notes from his interviews with Jobs, but the judge in the case has ruled that Isaacson doesn't need to comply. Isaacson invoked reporter's privilege and refused to hand over source material and a list of documents and recordings involving his time with Jobs. U.S. District Court Judge Denise Cote agreed on July 20 that Isaacson didn't need to comply with the request, but gave the class-action lawyers an out -- they can try again to force Isaacson to comply provided that they pass a legal test that sometimes allows disclosure of journalists' non-confidential material. One lawyer for the plaintiff, Steven Berman, argues that the reporter's privilege is moot, since Jobs never asked Isaacson for confidentiality. Berman also says that he has another source for Jobs' comments about ebooks. The Department of Justice is trying hard to knock down the time-honored reporter's privilege in a case where they're attempting to get a Wall Street Journal reporter to testify in a case against a former CIA officer. Fortunately, the Second Circuit Court of Appeals is friendly towards a free press, commenting in another case that "wholesale exposure of press files ... would burden the press with heavy costs of subpoena compliance, and could otherwise impair its ability to perform its duties ... [it] would risk "the symbolic harm of making journalists appear to be an investigative arm of the judicial system, the government, or private parties." [via paidContent]
European Commission investigating 13 companies for optical drive price fixing
The European Commission is digging it its heels and officially launching an investigation into 13 companies for allegedly rigging bids on optical drives with at least two major OEMs. The companies haven't been named, but it's safe to assume if the Commission is getting involved these aren't two-bit players selling cheap knockoffs. With the Statement of Objections issued, now its a matter of gathering evidence and formally charging those it can build a case against. With an e-book investigation underway and a DRAM conspiracy not far in its past, the existence of an optical drive cartel is probably not the sort of news the Commission wants to hear right now. Sadly, there's not much detail to share, but you'll find the complete and brief PR after the break. Now its just time to sit back and wait to see what companies we're allowed to start hating next.
Senator Schumer calls on DOJ to drop e-book price-fixing suit
Believe it or not, but that whole e-book price fixing fiasco is still an ongoing issue for the Justice Department. New York's senior senator, Chuck Schumer wishes it wasn't however, he simply wants the DOJ to drop the case and walk away. In a lengthy (factually questionable) op-ed in the Wall Street Journal the distinguished gentleman from the great state of New York said that a successful suit against Apple (he didn't bother to call out the others involved) would set the e-book industry back several years and allow Amazon to dominate the market unchallenged. He also makes a broader call for the administration to develop more clear guidelines for deciding what non-merger cases to pursue. Unfortunately, we have to point out, that his argument is undercut by some questionable data referenced in the editorial. According to Schumer Amazon once owned 90 percent of the e-book market -- a number that, if true, most certainly predates the release of the Nook. This is followed by an insinuation that Apple all but single-handedly toppled the retail giant with the launch of iBooks, cutting Amazons market share to just 60 percent. While the latter number sounds about right we'd hesitate to lay responsibility for that 30 point drop entirely at Apple's feet. To dig into Schumers op-ed yourself hit up the source link.
AUO, LG, Toshiba pay $571 million to settle LCD price fixing lawsuit, broken record keeps skipping
The way LCD price fixing lawsuits keep popping up and settling in short order, you'd think they were going out of style. The latest motley group to face a reckoning includes AU Optronics, LG and Toshiba, the combination of which has agreed to pay a total of $571 million to eight separate American states to either avoid the legal wrath of a class action lawsuit or to pay an outstanding fine. Allegedly, the trio kept LCD prices artificially high between 1996 and 2006, hiking the prices of PCs and TVs in the process. There's a slight twist here: while keeping the display builders honest is the primary goal, the class action status will net some direct rewards for the public. Americans who claim to have been wronged in the scandal can get "at least" $25, which goes a lot further towards buying an LCD than it did six years ago.
Sharp settles LCD price fixing dispute with Dell and others for $200 million
In an LCD panel price fixing tiff that's been raging on for what seems like time incarnate, Sharp has settled with Dell and two unnamed companies for $198.5 million to make it go away. Japanese panel makers like LG, Samsung and Toshiba are also defendants in the legal dragnet, and numerous fines and settlements totaling more than a billion dollars have already been paid out to the likes of AT&T and the US Department of Justice. This decision comes hot on the heels of an $87 million setback in court for Toshiba -- a ruling that may have taken the edge off of Sharp's defense.
Toshiba hit for $87 million in LCD price fixing verdict, maintains innocence
Toshiba decided not to settle when faced with allegations of price fixing, and now the company may have to pay the price. A jury handed down a verdict in the District Court for the Northern District of California today, hitting the company with $87 million in damages as part of a class action suit. The civil suit, separate from the criminal charges some of its alleged co-conspirators faced, wrapped today with the decision to award consumers $70 million and gave $17 million to manufacturers who purchased the company's panels. Toshiba may not actually have to pay up, however, thanks to settlements struck by others caught up in the same scandal, which could cover the damages. Regardless, the company maintains its innocence and actually plans to pursue "all available legal avenues" to reverse the decision. For more of Toshiba's response, check out the PR after the break.
E-book price fixing court date set for 2013
The Justice Department has been ready to take Apple to task over these recent allegations of e-book price fixing, and now a court date has been set: Apple will have to face the music almost a year from now, on June 3, 2013. Apple, Macmillan and the Penguin Group are the targets in the case, and while each of them has denied any formal price-fixing in the past, the court will do a little formal digging into those claims. A year is quite a long ways away, but stay tuned and we'll see exactly what case the Justice Department plans to lay out against Apple and the other publishing companies then. [via Engadget]
Report: HP's South Korean offices raided over alleged price fixing
Korea Times is a publication that isn't shy of the odd bold statement and today it's claiming that HP's South Korean offices were raided on suspicion of price-fixing deals made with IBM and Oracle. The country's Fair Trade Commission seized documents, computer records and questioned employees over alleged price-rigging on public-sector contracts. A company spokesperson said that the visit was routine, while FTC officers refused to comment about ongoing matters, but what is clear is that if any wrong-doing is found, the case will be turned over to prosecutors with the aim of commencing criminal proceedings for those responsible.
Apple says e-book price fixing charges 'simply not true,' Macmillan also responds
Not that we were expecting Apple and Macmillan to simply fess up and say, "you're right, totally tried to circumvent the free market," but both companies have come out swinging pretty hard against the allegations of price fixing. Apple has rejected the charges, calling them "simply not true." A company spokesman, Tom Neumayr, went so far as to tell Reuters that Cupertino was actually fostering competition by "breaking Amazon's monopolistic grip on the publishing industry." John Sargent, the CEO of Macmillan, defended his company's behavior in blog post, saying the publisher had done nothing illegal and that the concessions sought by the DOJ in settlement negotiations were "too onerous." It looks like the next step for both is to face off with the US government in court -- a daunting task, no matter how large your war chest.
Justice Department formally charges Apple, big five publishers in e-book price fixing case (update)
The Justice Department has formally decided to sue Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster over alleged e-book price-rigging. Apple and Macmillan have already denied any wrongdoing, saying that the agreements were enhancing competition in an industry previously dominated by Amazon. The case centers around a deal to switch to agency pricing, where the vendor takes a 30 percent cut of each sale rather than the wholesale model which allows stores to sell books at rock-bottom prices. It was previously believed that the publishers had cut back-room deals with the Government agency after bowing to pressure to withdraw Cupertino's "favored nation" status. If successful, the DoJ will allow Amazon and Barnes and Noble amongst others to return to the wholesale model to sell best-sellers at a loss, something that the big five are desperate to avoid, and will look to fight the battle in court. Update: The PDF of the DoJ's filing is now available online -- it makes for fascinating reading. Update 2: Bloomberg is now reporting that Simon & Schuster, Lagardère SCA's Hachette Book Group and HarperCollins have settled with the DoJ over unspecified terms. Hasty!
