Apple was found guilty in July of conspiring with publishers to fix the price of eBooks. As punishment, Apple must delete existing contracts with publishers and negotiate new ones, one at a time to avoid new conspiracy. The government is also pushing for Apple to let Amazon and others sell their books from Apple’s iPhones and iPads.
The whole story is framed like this: Apple and publishers are the bad guys, conspiring against victim Amazon to screw readers out of reasonably priced eBooks. So government, the hero, steps in and sets it right. Everyone lives happily every after.
It sounds like a bad fairy tale. Unfortunately, the true story that nobody is telling is actually something of a Shakespearean tragedy.
Here’s the true and tragic story of how Apple ended up helping Amazon become the Mother of All Monopolies.