Last week, I reported that Apple and a number of other book publishers faced a lawsuit over collusion for e-book pricing. Yesterday, that lawsuit was made official by the U.S. Department of Justice.
According to this article by The New York Times, the DOJ is suing Apple, alleging that the company lowered its e-book prices in the iBookstore in 2010 as a means to fight Amazon’s low pricing. Julie Bosman explains.
At the time, Apple with its blockbuster iPad was trying to challenge Amazon’s hold on the e-book market. Amazon, the online retail giant, had become a kind of Walmart for the e-book business by lowering the price of most new and best-selling e-books to $9.99 — a price meant to stimulate sales of its own e-reading device, the Kindle.
Publishers, looking for leverage against Amazon, saw Apple as their white knight.
Three of the publishers — Hachette Book Group, Simon & Schuster, and HarperCollins — that faced suits have already agreed to settlements. But the fight is far from over. Either way, the Justice Department is looking to ensure that e-book prices are lowered for everyone because “E-books are transforming our daily lives, and improving how information and content is shared. For the growing number of Americans who want to take advantage of this new technology, the Department of Justice is committed to ensuring that e-books are as affordable as possible.”