Apple Inc (NASDAQ:AAPL) may not have to grapple with U.S in EBook case
There is some news that the United States department of justice is reconsidering the stand that it has taken about it EBook injunction against the technology mammoth, Apple Inc (NASDAQ:AAPL). The company had been found guilty of price-fixing of EBooks and is now resubmitting recommendations for an injunction.
The U.S had sued AAPL as well as 5 other publishers in 2012 April. The allegation was that these 6 companies had connived to raise prices to eat into Amazon’s business, compelling the latter to take-on a completely new pricing model. Hachette Book Group, Pearson’s Penguin unit, Verlagsgruppe Georg von Holtzbrinck GmbH’s- Macmillan unit, News Corp’s HarperCollins, CBS Corporation and Simon & Schuster, Lagardere, had all settled with the United States’ government. Apple is now the only defendant in the case.
It is understood that the other 5 companies settled for a collective total of approximately $160 million. This is a figure that Apple might have to match or top, when the 2nd part of this suit is finally decided in a trial that will be conducted to determine what the punitive charges will be.
No easy way out
On 9 August, Judge Cote ruled that the U.S government’s proposal was too severe and had asked them to go back and work-out a proposal that would not regulate the company in such a significant manner. By no means is this an indication that AAPL will walk away from this unmarked. It is not like the company is simply going to be handed one final judgment that will position it comfortably back in the space that it occupied.
The Judge had asked both the parties to look for an agreement before they return to court next week, for another hearing. This case is a classic example of how large corporations, with their muscle-pull try to jostle around other companies and in the process, also flout business norms and laws.