Apple Inc. has been found liable for participating in a price-fixing conspiracy in the e-book market, a U.S. appeals court ruled today. The company will have to pay $450 million in damages to consumers who were overcharged for e-books.
The lawsuit, filed in 2012, alleged that Apple and five major publishers, including Hachette Book Group, HarperCollins, Holtzbrinck Publishers, Penguin Group, and Simon & Schuster, conspired to eliminate price competition in the sale of e-books. The publishers agreed to fix the prices of e-books through Apple’s iBooks platform, resulting in higher prices for consumers.
Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division released a statement today, praising the court’s decision. ‘We are gratified by the court’s decision,’ Baer said. ‘The decision confirms that it is unlawful for a company to knowingly participate in a price-fixing conspiracy, whatever its specific role in the conspiracy or reason for joining it.’
The lawsuit was filed in the U.S. District Court for the Southern District of New York on April 11, 2012. The trial against Apple began on June 3, 2013, and lasted for three weeks. The court found Apple liable for knowingly participating in and facilitating the conspiracy with the publishers.
The ruling is a major blow to Apple, which has been a major player in the e-book market. The company will have to pay $450 million in damages to consumers who were overcharged for e-books. Apple will also have to adopt a rigorous antitrust compliance program and pay for an external compliance monitor to evaluate and recommend improvements to the company’s antitrust compliance and training programs.
The case is a reminder of the importance of competition in the marketplace. By fixing prices, Apple and the publishers harmed consumers and stifled competition. The ruling is a victory for consumers and a reminder that companies must comply with antitrust laws.
Defendant: Apple Inc.
Criminal Charges: Price-Fixing Conspiracy
City and State: New York, New York
Exact Date: April 11, 2012
Sentence or Outcome: $450 million in damages, rigorous antitrust compliance program, and external compliance monitor
Dollar Amounts: $450 million
Related Federal Cases
- Chang Suk “C.S.” Chung, Price-Fixing, California 2006 · Florida
- Bancorp Piper Jaffray Inc, Illegal Trading Activity, New York NY, 2023 · Florida
- Americare Inc., Wage Theft, New York 2014 · Washington
- United Parcel Service, Inc. Accused of Wage Theft, New York NY, 2023 · New Jersey
- Alagi Samba, Conspiracy to Commit Wire Fraud, New York 2008 · Florida
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime