Court Says Apple Is Guilty of e-Book Price Fixing Reuters

After much debate, a federal judge today ruled that Apple Inc. indeed conspired to raise the retail prices of e-books.

The iPad maker reportedly served as a “ringmaster” in a conspiracy with publishers to intentionally raise the prices of e-books so that Amazon's monopoly would fall.

“The decision by U.S. District Judge Denise Cote in Manhattan is a victory for the U.S. government and various states, which the judge said are entitled to injunctive relief,” according to the Reuters report.

Judge Denise Cote said a trial for damages will follow, adding that “Apple is liable here for facilitating and encouraging the Publisher Defendants’ collective, illegal restraint of trade.”

Cote outlined that Apple forced not only Amazon, but other resellers “to relinquish retail pricing authority and then they raised retail e-book prices. Those higher prices were not the result of regular market forces but of a scheme in which Apple was a full participant.”