According to the antitrust lawsuit filed by the US Department of Justice, Apple and many other well known US ebook publishers stand accused of colluding to fix eBook prices. Although most of the publishers have settled this matter but Apple has filed a motion against the lawsuit. The company’s lawyers said that the case is completely against Apple, and find it ridiculous that Apple is trying to reduce completion and fix prices.
According to U.S Government, Apple and other publishers like Macmillan, Simon & Schuster, Penguin and HarperCollins were conspiring to fix eBook prices in their fight against Amazon. These publishers also favor the so-called agency model by which publishers can fix their own eBook price. Apple and other publishers are also alleged by the DoJ that they are trying to reduce completion in the eBook retail market.
According to Apple, the government “sides with monopoly, rather than competition, in bringing this case. The Government starts from the false premise that an eBooks ‘market’ was characterized by ‘robust price competition’ prior to Apple’s entry.” Earlier to iBookstore, Apple says “there was no real competition, there was only Amazon.”
Apple believes that its entry in eBook market is a positive step as it truly benefits the consumers while bringing some exemplary features such as color pictures, read and fixed display, audio and video and much more. In this way, they can give a real tough time to Amazon by providing innovative features to their consumers.
According to Apple, they are trying to help publishers particularly self-publishing and smaller publishing houses by giving them more power and support.
Well it’s time for Apple to settle all their issues. Fighting with U.S Government, attorneys general from 29 states and a group of consumers who are requesting class action status, will ultimately bring Apple to table talk otherwise they have very little left to gain.