Apple appeals in antitrust case
Apple appeals last year's anti-trust verdict, arguing that the company 鈥渉ad no knowledge" of a conspiracy to fix prices.
Apple appeals last year's anti-trust verdict, arguing that the company 鈥渉ad no knowledge" of a conspiracy to fix prices.
In a significant shift in the Apple e-books antitrust case, Apple Tuesday filed an appeal of a judge鈥檚 ruling that it violated US antitrust laws by conspiring with publishers to fix e-book prices.
Apple said the judge鈥檚 ruling 鈥渋s a radical departure鈥 from modern antitrust law that will 鈥渃hill competition and harm consumers鈥 if allowed to stand.
Apple asked the Second US Court of Appeals to overturn the judgment in Apple鈥檚 favor, or grant a new trial with a different judge. It also said its court-appointed monitor was 鈥渦nprecedented and unconstitutional鈥 and asked that the monitor鈥檚 work be suspended until an appeals court decides if it was correctly appointed.
Apple had indicated it would seek an appeal if the judgment was not in its favor.
In April 2012, the Department of Justice sued Apple and five of the six major US publishers for conspiring to set e-book prices in order to break Amazon鈥檚 dominance of the market. The publishers all eventually settled, leaving Apple to resolve the matter in court.
Last July US District Judge Denise Cote ruled that Apple had colluded with major book publishers to raise the price of e-books in a price-fixing conspiracy. The company was given a court-appointed monitor and could pay up to $840 million in antitrust claims.
But in papers filed Tuesday, Apple refuted the ruling, saying it 鈥渉ad no knowledge that the publishers were engaged in a conspiracy at the time.鈥 Apple also argued that by entering the e-book market, it 鈥渒ick-started competition in a highly concentrated market, delivering higher output, lower price levels, and accelerated innovation.鈥
The appeal extends a high-profile, high-stakes case that will shape the future of the e-books industry. We鈥檙e expecting more legal battles to come.