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DOJ demands Apple terminate publisher deals and rival e-bookstore restrictions (updated)
In a decisive move in the legal battle surrounding Apple's fishy e-book pricing practices, the US Department of Justice has issued a proposed remedy aimed at leveling the playing field. The terms of the proposal, which requires approval by the court, call for an end to Apple's deals with major publishing houses, as well as allowing rival e-book apps, like Amazon's, to link to their own online bookstores. The announcement is hardly surprising, considering that it comes just a few weeks after US District Judge Denise Cote ruled that Apple had conspired to bump up the retail prices of e-books. In the official brief, Assistant Attorney General Bill Baer said, "Under the department's proposed order, Apple's illegal conduct will cease and Apple and its senior executives will be prevented from conspiring to thwart competition in the future." You can read the release in full after the break. Update: Apple has formally responded to the Department of Justice's proposal and predictably, the company isn't happy. In a filing with the United States District Court, Apple said, "Plaintiffs' proposed injunction is a draconian and punitive intrusion into Apple's business, wildly out of proportion to any adjudicated wrongdoing or potential harm." Apple also disputed the DOJ's assertion that its plan is intended to foster healthy competition, arguing that the "overreaching proposal would establish a vague new compliance regime -- applicable only to Apple -- with intrusive oversight lasting for ten years, going far beyond the legal issues in this case, injuring competition and consumers, and violating basic principles of fairness and due process." While the tides seem to be turning against Apple as the case moves forward, Cupertino is evidently not going down without a fight.
Australia pondering joining e-book lawsuit bandwagon
If Apple and the Big Five thought they only had to contend with a federal e-book lawsuit in the US, they'd better think again. Australia's Competition and Consumer Commission is inviting local businesses to raise formal concerns as it weighs up launching its own judicial broadside against the alleged cartel. The Commission refused to comment publicly on its plans beyond saying that it was "aware of the latest developments" and would listen to local resellers who had concerns about the Australian market. While Simon & Schuster, Hachette and HarperCollins made back-room deals with the DoJ yesterday, they'd still be involved (at least initially) with the second front of this conflict. Meanwhile, the threat remains of the European Union joining in: turning it from a spot of local trouble into a global courtroom battle for the future of e-book pricing.
