Apple to pay $US450m over e-books

An appeal court ruling means Apple will have to fork out $US450 million to e-book consumers after being found guilty of breaking antitrust laws.

Apple.

Apple must pay $US450m to e-book consumers after being found guilty of breaking antitrust laws. (AAP)

The US Supreme Court has refused to consider the appeal by Apple, meaning that the tech giant will have to pay some $US450 million ($A602 million) to consumers for having inflated the prices of its e-books in collusion with five publishing houses.

A New York appeals court last year found Apple guilty of conspiring with the firms to fix the prices of its e-books in violation of antitrust laws.

Apple had already reached a tentative out-of-court agreement to pay some $US450 million to end the civil suit filed by consumers and several states, but it pursued its appeal and will now have to pay a $US450 million settlement.

"Apple's liability for knowingly conspiring with book publishers to raise the prices of e-books is settled once and for all," said Assistant Attorney General Bill Baer of the Justice Department's antitrust division.

"And consumers will be made whole," he added.

The ruling is a victory for Amazon, which had entered the e-book market pricing its e-books at $9.99 and sparking the ire of the five publishers, who wanted higher prices.

The prices of bestselling e-books rose to as much as $14.99, severely reducing Amazon's market share, when Apple entered the market and the lawsuit filed in 2012 accused Apple and the publishers of conspiring to force consumers to pay "tens of millions of dollars more" for e-books.

With the unveiling of its iPad in 2010 and Apple's online iBookstore, the publishers joined with the firm to fix e-book prices and limit competition in the sector.


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Source: AAP



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