Supreme Court denies Apple appeal in e-books price fixing case

The company will pay $450 million in a settlement, with most of the money going to e-book buyers

Apple will pay US$450 million as a settlement for e-book price fixing after the U.S. Supreme Court declined to hear the company's appeal of a lower court's antitrust ruling.

The Supreme Court's decision Monday ends Apple's appeal of the antitrust case against the company and five book publishers and upholds a June 2015 antitrust ruling at the U.S. Court of Appeals for the Second Circuit.

Apple had agreed in 2014 to pay a $450 million settlement in the case, brought by the Department of Justice and 33 states and territories in 2012, if the company did not win its appeals. Late last year, the company asked the Supreme Court to take up the case.

The DOJ accused Apple, Hachette Book Group, HarperCollins Publishers, Macmillan, Penguin Group and Simon & Schuster of conspiring to raise prices in retaliation for Amazon.com pricing most e-books at $9.99 beginning in late 2007.

Apple and the publishers conspired to set e-book prices at $12.99 and $16.99, the DOJ alleged. In early 2010, publishers agreed to shift to a new pricing model where they set the prices for e-books, instead of retailers, the agency charged.

Most of the money from Apple -- $400 million -- plus another $166 million settlement from the publishers, will go back to e-book purchasers, the DOJ said. The other $50 million in Apple's settlement covers lawyers' fees and payments to states.

Most e-book purchasers will receive reimbursement for the higher prices they paid through automatic credits at their e-book retailers, the agency said in a press release.

"Apple’s liability for knowingly conspiring with book publishers to raise the prices of e-books is settled once and for all," Assistant Attorney General Bill Baer of the DOJ's Antitrust Division, said in a statement. "And consumers will be made whole."

Apple did not immediately response to a request for comments on the Supreme Court's denial of its appeal.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?