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| Version 2 | Version 3 |
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| Apple conspired to fix e-book prices, judge rules | Apple conspired to fix e-book prices, judge rules |
| (about 1 hour later) | |
| Apple conspired with publishers to fix the price of electronic books, a US judge has ruled. | Apple conspired with publishers to fix the price of electronic books, a US judge has ruled. |
| Manhattan Judge Denise Cote said the iPad maker "conspired to restrain trade". | Manhattan Judge Denise Cote said the iPad maker "conspired to restrain trade". |
| But the firm's spokesman, Tom Neumayr, said Apple would appeal against the ruling and fight "false allegations". | |
| Five publishers that were originally named as defendants alongside Apple have already reached settlements, including Penguin. | Five publishers that were originally named as defendants alongside Apple have already reached settlements, including Penguin. |
| The judge ordered a new hearing to determine damages to be imposed on Apple. | The judge ordered a new hearing to determine damages to be imposed on Apple. |
| The US Department of Justice said the conspiracy was designed to challenge online retailer Amazon's dominance of the fast-growing e-books market. | The US Department of Justice said the conspiracy was designed to challenge online retailer Amazon's dominance of the fast-growing e-books market. |
| Penguin settled its case for $75m (£49m). Hachette, HarperCollins and Simon & Schuster created a $69m fund for refunds to consumers, while Macmillan settled for $26m. | |
| Judge Cote said: "The plaintiffs have shown that the publisher defendants conspired with each other to eliminate retail price competition in order to raise e-book prices, and that Apple played a central role in facilitating and executing that conspiracy. | Judge Cote said: "The plaintiffs have shown that the publisher defendants conspired with each other to eliminate retail price competition in order to raise e-book prices, and that Apple played a central role in facilitating and executing that conspiracy. |
| "Without Apple's orchestration of this conspiracy, it would not have succeeded as it did in the spring of 2010," she said. | "Without Apple's orchestration of this conspiracy, it would not have succeeded as it did in the spring of 2010," she said. |
| Fight continues | Fight continues |
| US Assistant Attorney General Bill Baer called the ruling "a victory for millions of consumers who choose to read books electronically". | US Assistant Attorney General Bill Baer called the ruling "a victory for millions of consumers who choose to read books electronically". |
| He said the judge agreed with the Justice Department and 33 state attorneys general that executives at the highest levels of Apple orchestrated a conspiracy with five major publishers to raise prices. | He said the judge agreed with the Justice Department and 33 state attorneys general that executives at the highest levels of Apple orchestrated a conspiracy with five major publishers to raise prices. |
| "Through today's court decision and previous settlements with five major publishers, consumers are again benefiting from retail price competition and paying less for their e-books,'' Mr Baer said. | "Through today's court decision and previous settlements with five major publishers, consumers are again benefiting from retail price competition and paying less for their e-books,'' Mr Baer said. |
| Consumer groups in the US cheered the news. | |
| "If we let companies get away with this type of price fixing, consumers will be denied a substantial part of the benefits of the digital revolution," said Dr Mark Cooper of the Consumer Federation of America, which had filed a supporting brief in the case. | |
| But after the ruling, Mr Neumayr insisted that Apple had brought innovation and competition to the market, not restricted it. | But after the ruling, Mr Neumayr insisted that Apple had brought innovation and competition to the market, not restricted it. |
| "Apple did not conspire to fix e-book pricing and we will continue to fight against these false accusations,'' he said. "We've done nothing wrong." | "Apple did not conspire to fix e-book pricing and we will continue to fight against these false accusations,'' he said. "We've done nothing wrong." |
| Warning to others | |
| Previously, Apple's attorney, Orin Snyder, had told the court that Judge Cote would set a "dangerous precedent" if she concluded that Apple manipulated e-book prices. | Previously, Apple's attorney, Orin Snyder, had told the court that Judge Cote would set a "dangerous precedent" if she concluded that Apple manipulated e-book prices. |
| However, Columbia University law professor Scott Hemphill said today's ruling was narrow and would be unlikely to set any legal precedent. | |
| "It may send some signals to tech companies about what they can and can't do," said Prof Hemphill. | |
| "But the precedential value is limited because the ruling is by a district court." | |
| However, he added that the judge in this case took particular pains to anticipate a challenge from Apple - something that chief executive Tim Cook hinted at earlier this year, when he dismissed the idea of a settlement. |