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A JUDGE HAS today found Apple guilty of a price-fixing conspiracy for electronic books, saying the company “conspired to restrain trade” with publishers to boost the price of ebooks.
Judge Denise Cote, who presided over a bench trial in New York, said in her opinion that “Apple is liable here for facilitating and encouraging the Publisher Defendants’ collective, illegal restraint of trade.” She ordered a new hearing to determine damages.
Each of the five publishers originally named in the US government’s civil lawsuit settled the case, leaving Apple to stand trial alone.
Apple’s chief executive Tim Cook had said ahead of the trial that the California firm would not settle, claiming it had done nothing wrong but was merely pursuing normal business practices.
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.
At the time, publishers were furious at the state of the market dominated by Amazon, which sold most bestsellers for just $9.99.
Amazon held “wholesale” contracts with publishers in which it set prices. Apple’s contracts shifted to an “agency” model where publishers set the price in exchange for a 30 percent commission to Apple.
Prior to Apple’s entry, the publishers – all of whom have settled in the case – would complain about Amazon’s $9.99 price at private dinners in fancy New York restaurants, but each feared taking on the Internet giant alone.
Among the publishers settling the case, the largest was with Penguin for $75 million, while a settlement with Hachette, Harper Collins and Simon & Schuster created a $69 million fund for refunds to consumers. Macmillan settled for $26 million.
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A credit to these workers and their families who seemed to be doing most of the protesting,picketing and online campaigning themeslves ,very proud to be Irish because of them this week.
The important lesson here is that the people stood together, they stayed loyal to each other and their strength came from themselves. They did this for us, for employees that may be in a horrible situation like they have been in the past few months.
They have set a precident for all. It’s not what they received in money in the end, it was people power. I wish them well in their future and I hope it’s a good and positive one.
Hooray! And they should get double nay treble for the trouble they had to go to in order to achieve their rights.
Up the workers – up the workers – up the workers.
Its great that they got a result, well done to all involved and those that supported them all over the world through social networks….. People power is alive and kicking
Just a question? Why didn’t we get a list of the main customers of Vita Cortex customers so we could arrange a boycott unless it is sorted.
Get them where it hurts.
Credit to the VC32 and their families for standing strong through thick and thin for what was right not just for them but for every worker in the country.
Brilliant United bunch – now if we hold together in the Referendum – we too can teach Government and Europe a lesson in not taking the Irish Population for granted as being austerity mugs for the Bankers and inept Politicians !
Fair f?!?! To you all- got what u were entitled to- fair play
have your say