Apple colluded on e-book prices, judge finds

Apple you greedy Ba****ds! So good to see justice done here and I hope they get whacked with a massive fine to match their appetite for fraudently gained profits, preferably in the 9 digit range.

Where are the JT Apple fanboys when you need them?

This is what happens when one company gets too large and has too much power. Apple as well as the other leading corporation act in many unethical ways and even when found out deny any wrong doing. A few decades ago this would lead to a mass boycott of a company, now, not a lot.

It is clear that Judge Cote is biased. Everyone following the trial could see that what she calls "compelling evidence" is not compelling at all. She read the message that was not there. While Amazon caused damage and low profits to authors and publishing houses - by selling at a lower price than it bought from them, Apple offered a realistic price that would benefit the whole market. Well, in a world where people want free-everything, this doesn't work. To me, it's another sign of how US economy is not working as properly as it should.

this is a crazy ruling. Amazon is the evil one in this, not Apple. Amazon screws publishers and music companies to gobble marketshare, and then puts the screws to their vendors harder next time .

@moby yeah thats right blame anyone but Apple, because we all know that Apple is the symbol of peace and prosperity in the business world. LOL

Forcing up the price of e-books only makes free downloads more attractive. I still prefer paper books, especially when they are no more expensive than e-books.

Of course Apple wants prices higher they get 30% of the sale price and their shareholders who do nothing laugh all the way to the bank. Yet, people still defend their illegal practices.

Fine them hard, apple just takes everyone elses ideas anyway and call's it their own.

I agree with LostinNagoya on this one. Amazon were just using the practices that are used by the likes of WallMart and other big businesses. Yes, the consumer does gain on the lower prices, but at what cost to the producers or others that don't have the power to argue their individual cause. To persecute big business is not the answer, because that doesn't work. if the laws are not put in place to prevent these practices occurring, they will continue, and the winners are the legal profession. The consumer is abused daily by different loopholes or week laws, in all forms of business. The consumer protection agencies are always fighting an uphill battle, and until a true fairness law comes onto the statute books then these types of litigation will continue.

@minello7: exactly. Spot on. For those irrationaly condeming Apple because of its brand solely, I wish that one day Apple would make a world promotion and sell iPhones for $25 dollars, say, during one month. Hundreds of millions of customers would then have the chance of having one, at that negative price. But at what cost? How many more thousands of tech workers of other companies would get unemployed by that selfish act? Amazon is not doing different: buying cheap and seliing even cheaper. At what cost to the people in the publishing business? Easy to get irrational...

There were 5 other companies involved but they accepted that they had been caught in the price fixing and settled out of court. Only apple chose to go to court - thus the sense that the outcome was a forgone conclusion.

Fine them hard, apple just takes eve

ryone elses ideas anyway and call's it their own.

Yup, every other company was sitting on incredible gadgets like the iPhone, iPod, and iPad but simply decided not to produce them and make profits equaling the GDP of small countries.

As my grandpappy always used to say, all it takes is one BAD apple, and here we are!

every other company was sitting on incredible gadgets like the iPhone, iPod, and iPad

Not sitting on but using actively. [iphone] Blackberries ("crackberries, refering to how addictive they were among professionals) established the global smartphone market well before iphone came along; [ipod] my first MP3 player was acquired way back in 2000, which was perfect for the gym: [ipad] the XP tablets were a hit on trading floors of Wall Street, engineering sites and for other jobs requiring IT in the field .

Just because braying college kid trust-fund babies and sheltered Japanese consumers didn't have access to the above innovative and professional-use gadgets didn't mean they never existed. "If Apple doesn't make it, it doesn't exist," eh? Drink up that Kool-Aid. <>

What I took away from the trial coverage was that Apple's objective was to ensure they always recieved the lowest price from the publisher (i.e. if Amazon got a book at a low price, Apple would get thecsame book at the same low price) and that they would earn 30% of whatever that price was. This did not fix the pricing, as the publishers were free to set the retail prices wherever they wanted. This was an agency model.

However, Amazon's arrangement with publishers at that time allowed them to buy at prices determined by the publishers and then sell at any price they wanted to. This was a retail model.

Apple was not in a position to force Amazon to change its arrangement with the publishers. The publishers were free to sell to Amazon & Apple at prices they determined but Apple's arrangement made sure they never recieved a higher price than Amazon. So I am not clear how Apple is accused and found guilty of price fixing?

I can see why the publishers would be keen to pursue the agency model as they can control the retail prices. And the income from this accounts for virtually all their revenues. But for Apple, the revenue off ebooks is probably an inconsequential amount of their overall revenues, and the delta between 30% of a $9.99 sale vs a $14.99 sale (for arguably a limited number of books that are alleged to have increased in price due to Apple's actions) would probably be a tiny fraction of that. This motivation for publishers and lack of motivation for Apple might explain why the publishers settled and Apple went on to fight it?

Not sitting on but using actively. [iphone] Blackberries ("crackberries, refering to how addictive they were among professionals) established the global smartphone market well before iphone came along; [ipod] my first MP3 player was acquired way back in 2000, which was perfect for the gym: [ipad] the XP tablets were a hit on trading floors of Wall Street, engineering sites and for other jobs requiring IT in the field .

Just because braying college kid trust-fund babies and sheltered Japanese consumers didn't have access to the above innovative and professional-use gadgets didn't mean they never existed. "If Apple doesn't make it, it doesn't exist," eh? Drink up that Kool-Aid. <>

Jeff Lee - I've for a few years now been trying to figure out where all this tech-boy anger towards Apple comes from and I think I've got it figured out. Bear with me.

Technology was the last bastion of tech nerds where they felt they could lord it over people with social skills, jocks, popular people etc. who just didn't care. Apple comes along and in a few short years creates devices for the latter that are so easy and convenient to use that even technology has been removed as a haven for the nerds.

For example, a few months ago I had no idea, nor cared what "tethering" was. Nerds the world over foamed at the mouth when you said you didn't know how to tether your smart phone to some device. I learned what it was and mastered it in 30 secs on my iPhone5. I am now as technically efficient as any nerd out there, however I have a girlfriend, a social life, sporting ability, and I bathe. Cue the anger.

I should get paid for this thesis..

@Minello7,

I agree with LostinNagoya on this one. Amazon were just using the practices that are used by the likes of WallMart and other big businesses. Yes, the consumer does gain on the lower prices, but at what cost to the producers or others that don't have the power to argue their individual cause.

OK, now go back and re-read the article again. Amazon was buying books at the publisher's wholesale price and selling them at a loss in order to give their Kindle sales a shot in the arm. The publishers weren't getting the shaft, Amazon's profit margin was. Business calls this a "loss-leader". Another example of this is when printer manufacturers sell you their printers for less than they cost to make and ship. They recoup that loss when the time comes to buy the overpriced replacement toner/ink cartridges or paper (yeah, they LOVE it when you buy their "high quality" paper).

Having every book at $9.99 is just pure foolishness => Give me my tin-foil hat. Maybe every Android and iOS app should be $9.99 also. Maybe everything should be $9.99 and everything that costs more than that manufactures should be expected to take a loss.

I wish that one day Apple would make a world promotion and sell iPhones for $25 dollars,

http://store.apple.com/us/buy/home/shop_iphone/family/iphone4?product=IPHONE4 (iPhone 4 new $0 + 2yr contract, warranty only good for one year ->may want to extend that to 2yr to cover the contract).

I still run a iPhone 3gs (with the antennae/signal issues --> refurb from NewEgg so never fixed). Will switch from AT&T to Net10 to drop the monthly charge in half.

"If Apple doesn't make it, it doesn't exist," eh?

And you're right. Take the wearable watches, for instance. Peebles has been on the market for sometime now, but no one talks about it. But wait and see when iWatch is launched in September. It will be a hit. It is called brand factor, and Apple is a winner at that.

hoserfella: Where did you detect anger in my post? Was it the course, offensive language or perhaps the strings of exclamation marks? LOL.

Apple comes along and in a few short years creates devices for the latter that are so easy and convenient to use that even technology has been removed as a haven for the nerds.

Well, as I pointed out, my ancient MP3 player was ideal for the gym. You might an insight from that that I and a billion other non-Apple users are nothing close to being "nerds."

Although I love Apple products and devices one must purchase these things knowing that YOU are the product now. Most true nerds will know that Edward Nigma wanted to revolutionize TV with his unique satellite but his goal was to make US the product just like Apple has successfully done.

*if you don't know who Edward Nigma is, you are not a nerd, not even a Guest Pass.

Apple is the new Microsoft. "You either die a hero, or you live long enough to see yourself become the villian".

Apple is going to muscle companies around. Business is war. We shouldn't be surprised.. This book thing is small potatoes compared to the destruction of the Constitution and your civil rights. Mr. Snowden spilled a big ol can of beans on those of you who love EASY to do, LEARNED in 5 minutes, think you are part of the nerd club.

Hope they deny the appeal and fine Apple into the dirt.

Apple is going to muscle companies around. Business is war. We shouldn't be surprised.. This book thing is small potatoes compared to the destruction of the Constitution and your civil rights. Mr. Snowden spilled a big ol can of beans on those of you who love EASY to do, LEARNED in 5 minutes, think you are part of the nerd club.

Thank you, FPSRussia for highlighting my point