Apple agrees to an out-of-court settlement in $840 million e-book price-fixing trial

Five publishers settled last year with US courts after they were found guilty of conspiring with Apple to fix the price of e-books to counter Amazon

James Vincent
Tuesday 17 June 2014 17:57 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Apple has agreed to end its long-running legal battle over e-book price-fixing with an out-of-court settlement that could see the iPhone-manufacturer paying out hundreds of millions to US consumers.

The terms of the settlement have not been revealed and are still awaiting court approval, but the complainants are seeking up to $840 million in damages - triple the amount that it’s estimated Apple gained by price-fixing.

The lawsuit began in April 2012 when the US Department of Justice sued Apple and five publishers (Hachette, Harper Collins, Macmillan, Penguin and Simon & Shuster) for illegally working together to raise the prices of e-books and challenge Amazon’s dominance in the market.

The DoJ was then joined by 33 US states and territories, including individuals consumers in other states that filed a class action lawsuit.

The five publishers eventually reached a settlement last year and agreed to pay more than $160 million in antitrust charge, but Apple continued to battle on until July last year when US District Judge Denise Cote found that the tech company had conspired to raise prices along with publishers.

Apple is still appealing this latter decision and the payment of this week’s out-of-court settlement will rely on the outcome of that appeal.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in