Apple found guilty of e-book price fixing

As reported in an article on TimeBase on 22 March 2013, Apple has already been investigated by a Federal Parliamentary Commission for the cost of their electronic products. Today, a US judge has found Apple guilty in e-book price fixing.

In an article reported in the Sydney Morning Herald, A US judge has found Apple violated antitrust law in a price-fixing case, saying the company "conspired to restrain trade" with publishers to boost the price of e-books.

District Court Judge Cote rejected arguments from Apple, which claimed its entry into the e-book market promoted competition. The judge also determined that comments from late chief executive Steve Jobs helped prove the government's allegations of a conspiracy.

The trial focused on a six-week period in late 2009 and early 2010 during which Apple negotiated contracts with publishers ahead of its iPad launch and proposed a new and more profitable business model.

Cote had said before the trial that the government had a strong case, but Apple attorneys were buoyed by some of her comments at trial. During closing arguments, Cote pointedly questioned both sides.

The Justice Department has said it will seek injunctive relief and a court-ordered independent monitoring trustee. A group of 33 states will seek unspecified damages against Apple. A class-action suit against Apple could also be bolstered by Cote's ruling.

Keith Hylton, a professor at Boston University School of Law, said Apple's chances of winning the appeal were "slim" given that Cote's 160-page opinion relied extensively on factual evidence.

"An appellate court is unlikely to have room to modify the decision substantially," Hylton said.

The Apple battle is a case worth watching due to its impact in Australian Intellectual Property law.

TimeBase’s Intellectual Property Point-in-Time service guarantees accurate, current and convenient access to IP legislation at any date. Contact us for a free trial.