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Apple agrees to settle e-book price-fixing dispute | Apple agrees to settle e-book price-fixing dispute |
(about 5 hours later) | |
Apple has agreed an out-of-court settlement in a case in which it was being sued by consumers who overpaid for e-books due to price-fixing between the tech giant and publishers. | Apple has agreed an out-of-court settlement in a case in which it was being sued by consumers who overpaid for e-books due to price-fixing between the tech giant and publishers. |
A court document filed in New York says a "binding agreement" has been reached. | A court document filed in New York says a "binding agreement" has been reached. |
The amount of compensation offered by Apple is not revealed, but the litigants were thought to have been seeking up to $840m (£495m). | The amount of compensation offered by Apple is not revealed, but the litigants were thought to have been seeking up to $840m (£495m). |
Apple has consistently denied any wrongdoing over e-book pricing. | Apple has consistently denied any wrongdoing over e-book pricing. |
The impending trial, in which 33 US states and territories were seeking reparations from Apple on behalf of their citizens, was linked to a separate ruling last year, where a judge said Apple had violated anti-trust laws by striking deals to enable them to charge a higher price for some e-books in its online store. | |
As well as the authorities taking action, several individuals from across the US were also seeking compensation for overpaying in their e-book purchases. | As well as the authorities taking action, several individuals from across the US were also seeking compensation for overpaying in their e-book purchases. |
The allegation was that Apple, a distributor of e-books, had illegally conspired with five of the biggest publishers to stop Amazon - a dominant force in the market - selling titles at a loss. | The allegation was that Apple, a distributor of e-books, had illegally conspired with five of the biggest publishers to stop Amazon - a dominant force in the market - selling titles at a loss. |
Previously, publishers had sold e-books to distributors at a wholesale price, with retailers such as Amazon and Apple able to set their own sale prices. | Previously, publishers had sold e-books to distributors at a wholesale price, with retailers such as Amazon and Apple able to set their own sale prices. |
But the court case heard that the publishers (Hachette Book Group, HarperCollins Publishers, Penguin Group (USA) Inc, Macmillan and Simon & Schuster Inc) had agreed with Apple to move to an "agency model," in which the publishers agree a minimum retail price with distributors, thus preventing them from offering titles at a loss. | But the court case heard that the publishers (Hachette Book Group, HarperCollins Publishers, Penguin Group (USA) Inc, Macmillan and Simon & Schuster Inc) had agreed with Apple to move to an "agency model," in which the publishers agree a minimum retail price with distributors, thus preventing them from offering titles at a loss. |
However Apple denied that it was involved in price-fixing, accusing plaintiffs of "false accusations", and is in the process of challenging last July's ruling. | However Apple denied that it was involved in price-fixing, accusing plaintiffs of "false accusations", and is in the process of challenging last July's ruling. |
The publishers agreed to pay more than $166m to settle charges brought against them. | The publishers agreed to pay more than $166m to settle charges brought against them. |
The out-of-court settlement marks an about-turn from Apple, whose chief executive, Tim Cook, had previously dismissed the idea of reaching an agreement. | The out-of-court settlement marks an about-turn from Apple, whose chief executive, Tim Cook, had previously dismissed the idea of reaching an agreement. |
The firm declined to comment on the decision. | The firm declined to comment on the decision. |
Any deal is subject to the outcome of Apple's appeal of last year's case. | Any deal is subject to the outcome of Apple's appeal of last year's case. |
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