Apple request in e-books case denied

A judge has refused a request by Apple to temporarily suspend her ruling that it violated antitrust laws by conspiring with publishers.

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A judge has refused a request by Apple to temporarily suspend her ruling that it violated antitrust laws by conspiring with publishers to raise electronic book prices in 2010.

US District Judge Denise Cote also says it appears collusion is continuing even after her findings.

Cote's ruling in Manhattan on Friday, declined to withdraw the effect of last month's ruling while California-based Apple Inc. appeals.

The judge said she wasn't ready to rule on the government's suggested remedies to eliminate antitrust behaviour. She seemed dismayed as she noted that the publishers and Apple seemed to express together their opposition to some government recommendations, "reflecting a seriously continuing danger of collusion".

Apple, the maker of iPods, iPads and iPhones, continues to fight what it calls "false accusations".

The judge ruled last month that Apple had conspired with publishers to spoil the $9.99 e-book price Amazon.com had established. That ruling sided with government regulators' contention that Apple joined five major book publishers to gang up on Amazon to the detriment of consumers.

Apple, determined to protect one of the world's most beloved brands, has steadfastly denied it did anything wrong, even as the book publishers involved in the case settled to avoid going to trial.

The trial revealed e-book prices rose after Apple signed with publishers' so-called agency agreements, in which publishers rather than retailers set prices for each title.

Earlier this week, publishers that have settled the e-book pricing dispute with the federal government objected to penalties the government wants to impose on Apple, saying they'll hurt publishers rather than the personal electronics company.

In court papers submitted on Wednesday, five publishers said the government's plans to ban Apple from engaging in agency agreements for five years wouldn't restrict Apple's pricing behaviour.

"Rather, under the guise of punishing Apple, they effectively punish the settling defendants by prohibiting agreements with Apple using an agency model," lawyers for the publishers said.

As recommended by the government, a court order would require Apple to terminate any agency agreement with publishers.

The judge said Friday that any order she signs will be aimed at getting "us to a world" in which a publisher can negotiate independently with a retailer. She said it was clear that the largest book publishers don't engage in price competition with one another.


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Source: AAP



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