Apple Stock Price: US DoJ Softens E-books Injunction Proposal

on Aug 26, 2013
Listen, Monday, August 26: The United States government has offered to cut in half a proposed civil injunction against Apple Inc (NASDAQ:AAPL) for conspiring with major book publishers to raise prices of e-books. But the company has said that the revised proposal was still designed to “inflict punishment” and must be rejected.

In today’s pre-market trading, Apple shares were up 0.13 percent at $501.68 as of 13:26 BST.
In a July 10 ruling US District Judge Denise Cote found that Apple was guilty of conspiring with book publishers to undermine e-book pricing by rivals such as Inc (NASDAQ:AMZN), the dominant player in that market. The injunction aims to ensure that the iPhone maker doesn’t violate antitrust law.

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Under the US Department of Justice offer filed last Friday, the injunction against Apple would expire in five years, instead of 10 as was originally proposed. But the US government is still seeking the appointment of an external antitrust monitor – a measure to which Apple objects.
“This is unreasonable and unjustified and exceeds the bounds of even criminal price-fixing cases,” Orin Snyder, a lawyer for Apple, said on Friday in a letter to Cote, as quoted by Bloomberg.

At an August 9 hearing on the government’s initial proposal, the two parties were told by Cote to negotiate new remedies and return on August 27 as the judge didn’t want to over-regulate Apple’s businesses.
The judge has also suggested that the iPhone maker be required to stagger negotiations with book
publishers going forward to minimise the possibility of future collusion.

!m[Company Objects to Appointment of External Antitrust Monitor](/uploads/story/5090/thumbs/pic1_inline.jpg)
Apple is also arguing against the US government’s proposal that the company let other e-book retailers add hyperlinks on iPads and other devices to their own websites or e-book sites without a fee.
Meanwhile, the Department of Justice argued that some of the remedies proposed by the iPhone maker were even less restrictive than what the publishers had accepted.

The e-book market has long been dominated by Amazon, which started as an e-book store before growing into the online retail giant it is today. According to the DoJ, Apple has conspired with publishers, forcing them to sign deals that would allow it sell electronic versions of their books under a pricing model that would drive e-books prices up. Under the model Apple would take a 30 percent commission fee on every copy it had sold.
**As of 14:53 BST buy Apple shares at $500.16**
**As of 14:53 BST sell Apple shares at $504.00**


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