Subscribe free to our newsletters via your
. GPS News .




INTERNET SPACE
US says Apple led 'deliberate' scheme on ebooks
by Staff Writers
New York (AFP) June 3, 2013


A US government lawyer accused Apple Monday of concocting a deliberate scheme to fix prices of electronic books as the antitrust trial against the tech giant got underway.

"Apple knowingly and intentionally committed to a common scheme of publishers to raise prices," Justice Department attorney Lawrence Buterman told the court in an opening statement that laid out the government's case.

There was a "deliberate scheme by Apple" to "fix prices" in concert with major book publishers, Buterman said at the New York federal trial.

The alleged conspiracy cost consumers hundreds of millions of dollars in higher book fees, according to the government. The price of e-books soared right after Apple launched its iPad in 2010, the government alleged before a packed courtroom.

Apple attorney Orin Snyder said however that "the government has reverse-engineered a conspiracy" and that Apple was simply competing in the marketplace.

"Apple's intent was not to upend pricing paradigms throughout the industry, but to build the best bookstore and make sure prices were competitive," Snyder said in his opening comments.

US antitrust watchdogs have accused Apple of orchestrating a collusive shakeup of the electronic book business in early 2010 that resulted in higher prices. Apple denies that it conspired with publishers and maintains that it was a new entrant in a sector that at the time was dominated by Amazon.

Witness testimony got underway after Monday's opening statements with Apple associate general counsel Kevin Saul acknowledging to a government attorney that an initial Apple proposal included a provision that said publishers must move all book sellers to a different selling system. Saul's testimony will resume Tuesday and will include a rebuttal from Apple's attorneys.

The California technology giant is on its own in its fight against the US Justice Department, after five of the world's biggest book publishers named in the suit settled the charges and paid fines.

The civil trial is expected to last three weeks, and comes with Apple under pressure for its slumping share price, eroding market share for its iPhones and iPads and accusations in Congress it avoided billions in taxes.

Buterman's statement depicted Apple as the ringleader in a conspiracy that met the publishing industry's wish of ending Amazon's domination of e-books that limited the price of most best-sellers to just $9.99.

After Apple joined the market with its iPad and online bookstores, many of these books shot up to $12.99 or $14.99, according to the government.

Apple negotiated a different pricing system with the publishers whereby Apple as the seller received a 30 percent commission on sales. The other key point was an agreement that allowed Apple to match a lower price if a competitor cut prices.

The government maintains that Apple worked closely with the publishers as they pressured Amazon to accept the different model and effectively create a new, higher pricing range for electronic books.

The government's case will cite electronic messages and public and private comments, including some remarks from late chief executive Steve Jobs that the government says proves a conspiracy.

But Apple argues that the Jobs remarks and many other points of evidence are taken out of context. Apple acted out of self-interest and often in conflict with publishers with which the negotiations were contentious.

For example, Snyder cited correspondence between Apple and HarperCollins that showed sharp disagreement on the terms of the deal and undermine the conspiracy theory. Apple argues that it is not responsible for Amazon's decision to raise its prices.

"Apple cannot be held liable for business decisions made by other players as a result of its entry," Snyder said.

And he argued that after Apple entered the market for ebooks, "prices went down, not up."

Before his opening remarks, Snyder expressed concern following US Judge Denise Cote's comments last month that she tentatively supported the government's case. Cote will decide the non-jury trial.

But Cote assured Snyder that she has an open mind on the case.

"The deck is not stacked against Apple unless the evidence stacks the deck against Apple," Cote said.

.


Related Links
Satellite-based Internet technologies






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








INTERNET SPACE
Adamant Apple in court to fight ebook conspiracy
New York (AFP) June 1, 2013
Apple goes on the defensive Monday with the start of a trial in which US officials allege the company was the "ringmaster" of a conspiracy to raise prices of electronic books. In the trial set to open in US District Court in New York, the technology icon is going solo in its fight against the US Justice Department after five large publishers named in the lawsuit settled the charges. US a ... read more


INTERNET SPACE
Improving 'crop per drop' could boost food and water security

Researchers help threatened wheat crops in Asia

Pork takeover shows China hunger for foreign feasts

Asia concerns spread due to rogue US wheat

INTERNET SPACE
Milwaukee-York researchers forward quest for quantum computing

New Technique May Open Up an Era of Atomic-scale Semiconductor Devices

Bright Future For Photonic Quantum Computers

New magnetic graphene may revolutionize electronics

INTERNET SPACE
Airline industry calls for single emissions standard

Boeing's first 787 arrives in China: media

Slow progress on Unasur plans for a joint trainer aircraf

EADS sweetens KF-X offering

INTERNET SPACE
Volvo chief acknowledges errors, says to stay in US

Monitoring system can detect dangerous fatigue in mine truck driver

Electric cars slow to gain traction in Germany

Space drives e-mobility

INTERNET SPACE
Mexico hopes China leader's visit can narrow trade gap

US manufacturing lobby presses Obama on China

China's Xi in Trinidad to boost Caribbean trade

China opens dumping probe into EU, US chemical sales

INTERNET SPACE
Indonesia on right path to saving forests: Greenpeace

UN mourns slain Costa Rica environmentalist

More at-risk bird species in Brazilian forest than previously thought

Study explores 100 year increase in forestry diseases

INTERNET SPACE
Elevated carbon dioxide making arid regions greener

Landsat 8 Satellite Begins Watch

NASA Ships Sensors for Seafaring Satellite to France

NASA's Landsat Satellite Looks for a Cloud-Free View

INTERNET SPACE
Shape-shifting nanoparticles flip from sphere to net in response to tumor signal

Gold nanocrystal vibration captured on billion-frames-per-second film

Understanding freezing behavior of water at the nanoscale

Kinks and curves at the nanoscale




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement