Apple lost a major battle over eBooks on Wednesday, after a federal judge ruled that Apple violated antitrust law by conspiring with publishers to raise eBook prices.
How will this new ruling effect eBook sales on iTunes or Apple’s business in general?
The Justice Department filed its lawsuit against Apple and these publishers in 2012, claiming that these conspiracy activities violated Section 1 of the Sherman Act.
Violated Antitrust Law
The Sherman Act and federal antitrust laws protect the healthy flow of a capitalistic market by prohibiting and punishing deals that serve to stifle trade and competition.
Justice Department lawyers claimed in their suit that Apple and the five publishers were using an agreement to keep eBook prices artificially high. They allegedly ceased to compete over retail prices and gave Apple a 30% kickback on eBook sales.
Now What?
After the judge’s ruling, Apple’s shares on Nasdaq dropped $1.60 on Wednesday, reports Reuters. The computer giant still faces a trial to determine how much Apple will owe in damages.
Apple had previously refused to settle the case, even after the five conspiring publishers signed on to a settlement.
Still sticking to its guns, a spokesman for Apple said the company will “continue to fight these false accusations” and will appeal the court’s decision, reports The Associated Press.
Related Resources:
- Apple Faces Damages Trial Over E-Book Antitrust Violation (Bloomberg)
- Is Apple Resisting E-Book Antitrust Settlement? (FindLaw’s In House)
- Apple’s Response to E-Book Antitrust Allegations (FindLaw’s Courtside)
- Judge Disregards 11th Cir, Allows Baseball Antitrust Lawsuit (FindLaw’s U.S. Eleventh Circuit Blog)
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Civil Rights
Block on Trump’s Asylum Ban Upheld by Supreme Court
Criminal
Judges Can Release Secret Grand Jury Records
Politicians Can’t Block Voters on Facebook, Court Rules
