Publishers To Pay iBookstore Customers $3 For Each NYT Best Seller Purchased

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Apple can't ditch its ebook compliance monitor.
Apple can't ditch its ebook compliance monitor.
Photo: Apple

While Apple decided to hold out for a court battle — that it eventually lost — five of the publishers involved in the iBookStore price fixing antitrust case have already reached settlements with the DOJ. Two of those publishers, Penguin and Macmillan, are already sending out emails to customers to notify them that they’re eligible to receive iTunes credit, or a check for the settlement.

Apple Says The DOJ Is Trying To Give Amazon A Competitive Advantage On Ebooks

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Battle for e-textbooks heats up with new Nook company
Battle for e-textbooks heats up with new Nook company

Following up on the Department of Justice’s revised proposed punishment from Apple’s e-book antitrust case, Apple’s lawyers filed a response this morning claiming the DOJ is trying to give Amazon an unfair advantage on e-books.

Defense attorney Orin Synder said that the DOJ’s 12-page proposal is just trying to find a remedy that will give Amazon a competitive advantage again. Synder had the following to say regarding the DOJ’s proposal that Apple allow App Store developers  to sell e-books through their apps without Apple taking a cut:

Publishers Claim Recent DOJ E-Book Decision Punishes Them More Than Apple

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Not too surprisingly, the five major publishers originally named in the U.S. Department of Justice’s e-book case regarding their collusion with Apple on pricing have now themselves filed a complaint regarding the Justice Department’s proposal to eliminate the use of the agency model in any Apple agreements with publishers for a period of five years.

Publishers like the agency model as it allows them to set prices for e-books, instead of the distributor, as Amazon did before Apple’s own iBooks system launched on the iPad.

Apple Slams DoJ’s E-Book Ruling Proposal As “Draconian” And “Punitive”

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If the DoJ gets its way, the iBookstore will be shut down.
If the DoJ gets its way, the iBookstore will be shut down.

Earlier today, the U.S. Department of Justice proposed serious remedies for Apple to abide by now that the company has been found guilty of conspiring to fix e-book prices. When the ruling was issued last month that Apple was guilty, the outcome of the suit was unknown. How would the government punish Apple (for something that Apple has always adamantly denied)? Now we know.

Not only does the DoJ want Apple to stop selling e-books through the iBookstore entirely, but allow rivals like Amazon and Barnes & Noble to sell e-books in their iOS apps. In a scathing response to the DoJ’s proposal, Apple has called the proposed remedies “draconian” and “punitive.”

DoJ Wants Apple To Terminate Deals With Publishers, Link To Rival Bookstores Instead

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Apple can't ditch its ebook compliance monitor.
Apple can't ditch its ebook compliance monitor.
Photo: Apple

The ongoing iBooks antitrust case between Apple and the United States Department of Justice took a very interesting twist this morning when the DoJ and 33 state Attorneys General laid out plans to remedy Apple’s wrongdoings and restore competition to the market.

The DoJ wants Apple to terminate all of its deals with book publishers, and refrain from entering into any new ones for at least five years. It also wants the company to start selling e-books from rivals like Amazon and Barnes & Noble.