Apple threatens ‘chilling effect’ on the industry if found guilty at ebook trial

Antitrust trial ended Thursday, but verdict not expected for two months

The federal anti-trust trial between Apple and the US Department of Justice over alleged ebook price fixing came to a close yesterday.

In his final statement, Apple attorney Orin Snyder said that if the tech giant was found guilty, it would “send shudders through the business community.”

The case began when the DoJ accused five major publishers of conspiring with Apple of “consciously [committing] to a scheme to raise e-book prices throughout the industry.”

In 2010 Amazon set its default ebook price at just $9.99 and so Apple – alongside publishers Simon & Schuster, HarperCollins, Hachette, Penguin and Macmillan – sought to raise this figure, to $12.99 and $14.99 (figures that publishers pushed upwards to $16.99 and $19.99).

The five publishing houses involved have already bowed out of the case, settling for a combined $164 million.

In defending Apple’s actions, Snyder maintained that they have acted as any business would act when trying to enter a competitive market: negotiating with content owners for the best possible price.

Snyder also sought to rebuff the claims that Apple’s negotiations with publishers constituted a conspiracy by pointing out disagreements between the various parties; noting that “turmoil” in the ebook market demanded extensive talks; and accusing the DoJ of making “overreaching” readings of evidence.

The DoJ responsded that the evidence was clear cut, with government lawyer Mark Ryan pointing to examples such as Apple insertion ‘most favoured nation’ clause (MFN) into the contract. This meant that publishers had to offer their books to Apple at 70% of the lowest price anywhere on the market, meaning that Apple could match prices elsewhere whilst retaining their traditional 30% cut of profits.

Ryan also calculated that after the contracts took effect in April 2010 (only the largest publishing company, Random House, abstained from signing Apple’s deal), the prices of Amazon’s ebooks increased by almost 20%. "Apple was simply indifferent to customers paying higher prices," said Ryan.

A judgement is not expected on the trial for another two months, but if Apple are found guilty then it would set an important precedent in how the US deals with internet firms attempting to control markets.

Sport
The sun rises over St Andrews golf course, but will it be a new dawn for the Royal and Ancient Golf Club?
sportAnd it's Yes to women (at the R&A)
Arts and Entertainment
Friends is celebrating its 20th anniversary this year
tvSeries celebrates 20th anniversary
Sport
Yaya Touré (left) and Bayern Munich’s Spanish defender Juan Bernat
footballToure's lack of defensive work is big problem for City
Voices
voicesApple continually kill off smaller app developers, and that's no good for anyone
PROMOTED VIDEO
Life and Style
ebooksA superb mix of recipes serving up the freshest of local produce in a delicious range of styles
Life and Style
ebooksFrom the lifespan of a slug to the distance to the Sun: answers to 500 questions from readers
Arts and Entertainment
Liam Neeson said he wouldn't
tv

Liam Neeson's Downton dreams

Sport
Wembley Stadium
footballNews follows deal with Germany
Arts and Entertainment
A spell in the sun: Emma Stone and Colin Firth star in ‘Magic in the Moonlight’
filmReview: Magic In The Moonlight
Sport
A 'Sir Alex Feguson' tattoo
football

Arts and Entertainment
Ben Whishaw is replacing Colin Firth as the voice of Paddington Bear
tv

Thriller is set in the secret world of British espionage

Life and Style
life

News
ScienceGallery: Otherwise known as 'the best damn photos of space you'll see till 2015'
Life and Style
fashion

Bomber jacket worn by Mary Berry sells out within an hour

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Technical Product Marketing Specialist - London - £70,000

    £50000 - £70000 per annum: Ashdown Group: Cloud Product and Solutions Marketin...

    Trainee Helpdesk Analyst / 1st Line Application Support Analyst

    £18000 per annum: Ashdown Group: An established and growing IT Consultancy fir...

    Data Analyst / Marketing Database Analyst

    £24000 per annum: Ashdown Group: An established and growing IT Consultancy fir...

    Business Analyst – 2 year fixed term contract – Kent – Circa £55k

    £45000 - £55000 Per Annum 31 days holiday, pension, healthcare, annual bonus: ...

    Day In a Page

    Mystery of the Ground Zero wedding photo

    A shot in the dark

    Mystery of the wedding photo from Ground Zero
    His life, the universe and everything

    His life, the universe and everything

    New biography sheds light on comic genius of Douglas Adams
    Save us from small screen superheroes

    Save us from small screen superheroes

    Shows like Agents of S.H.I.E.L.D are little more than marketing tools
    Reach for the skies

    Reach for the skies

    From pools to football pitches, rooftop living is looking up
    These are the 12 best hotel spas in the UK

    12 best hotel spas in the UK

    Some hotels go all out on facilities; others stand out for the sheer quality of treatments
    These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

    Widespread fear of Isis is producing strange bedfellows

    Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
    Topshop goes part Athena poster, part last spring Prada

    Topshop goes part Athena poster, part last spring Prada

    Shoppers don't come to Topshop for the unique
    How to make a Lego masterpiece

    How to make a Lego masterpiece

    Toy breaks out of the nursery and heads for the gallery
    Meet the ‘Endies’ – city dwellers who are too poor to have fun

    Meet the ‘Endies’ – city dwellers who are too poor to have fun

    Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
    Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

    Ian Paisley’s decision to make peace with his IRA enemies

    His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
    'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

    'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

    Exclusive extract from Janis Winehouse's poignant new memoir
    Is this the role to win Cumberbatch an Oscar?

    Is this the role to win Cumberbatch an Oscar?

    The Imitation Game, film review
    England and Roy Hodgson take a joint step towards redemption in Basel

    England and Hodgson take a joint step towards redemption

    Welbeck double puts England on the road to Euro 2016
    Relatives fight over Vivian Maier’s rare photos

    Relatives fight over Vivian Maier’s rare photos

    Pictures removed from public view as courts decide ownership
    ‘Fashion has to be fun. It’s a big business, not a cure for cancer’

    ‘Fashion has to be fun. It’s a big business, not a cure for cancer’

    Donatella Versace at New York Fashion Week