US Court Forces Apple To Change E-Book Price Fixing

The US District Court for the Southern District of New York today issued an order regarding a remedy to address Apple Inc.’s pricing of e-books, requiring the company to change its agreements with publishers with which it was found to have fixed prices.

US Justice Department Assistant Attorney General Bill Baer issued a statement saying the outcome reinforces the department’s win for consumers.

“We’re pleased that the court has issued an order supporting the Department of Justice’s efforts to address Apple’s illegal price fixing conduct,” Baer said. “Consumers will continue to benefit from lower e-books prices as a result of the department’s enforcement action to restore competition in this important industry. By appointing an external monitor to ensure future compliance with the antitrust laws, the court has helped protect consumers from further misconduct by Apple. The court’s ruling reinforces the victory the department has won for consumers.”

The court order requires Apple to modify its existing agreements with the five major publishers with which it conspired – Hachette, HarperCollins, Holtzbrinck (which does business as Macmillan), Penguin Group USA, and Simon & Schuster – to allow retail price competition, the Justice Department said.

It also puts additional restrictions on Apple’s ability to work with the five existing publishers and to enter into new deals, prevents retaliation against those who refuse agency terms, and establishes an external monitor of Apple’s practices, to be funded by Apple, according to Justice.

A copy of the order is available here.

Apple plans to appeal the order, according to reports.