Lawsuits allege the late Steve Jobs may have played a part in fixing e-book prices
May 15, 2012 12:28 pm Leave your thoughts
The lawsuit against Apple and major publishers has sparked plenty of controversy. Phoenix business law attorneys can help companies that have been accused of illegal practices, including in a case of price-fixing.
Jim Puzzanghera reports in an April 11 article in the Los Angeles Times that the late Apple Inc. Chief Executive Steve Jobs took part in conspiring in fixing e-book prices along with top executives at five publishing companies, according to the lawsuit. The alleged price-setting has cost consumers tens of millions of dollars in a mere two years. In 2010, Apple's iPad was released, which allowed customers to purchase e-books through Apple and view the volumes on the tablet.
The average costs of e-books rose by $2 to $3 more than previous prices. The suit alleges that Apple received a 30 percent commission on every e-book it sold online. The initial suit was followed by 16 attorney general lawsuits, accusing Apple, Simon & Schuster Inc., Hachette Book Group, HarperCollins Publishers, Macmillan and Penguin Group of increasing prices on the electronic books.
Because the plan of raising prices was geared at creating a monopoly against Amazon, a leader in the e-book market, several book publishers – Hachette, HarperCollins and Simon & Schuster – reached a settlement with the Justice Department that would allow Amazon and other retailers to lower the prices of the e-books sold from the publishers.
"In addition, Hachette and HarperCollins agreed to settle the states' lawsuit and pay a total of about $51 million in restitution to e-book customers nationwide," Puzzanghera wrote about the publishing companies. "Apple, Macmillan and Penguin did not agree to a settlement, and Pozen promised the Justice Department would pursue the case against them vigorously."
Small companies in Arizona that have been accused of illegal activities, much like Apple and the publishing companies, should speak to small business attorneys to decide what their next legal action should be.
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