The European Commission announced today that it has reached a deal with publisher Penguin regarding the e-book price fixing charges raised by the EU back in 2012.
Like the four other publishers charged with colluding with Apple to fix the price of e-books, Penguin has agreed to ditch Apple’s agency model for e-books that let publishers set prices for e-books while distributors like Apple, Amazon or Barnes & Noble get a cut of the sale.
Apple was found guilty of e-book price fixing by federal judge Denise Cote earlier this month, and it looks like the total bill for colluding with book publishers for the launch of the iBookstore will be pretty steep.
The five publishers in the case – Hachette, Penguin, Random House, HarperCollins and Simon & Schuster – have already paid out $166 million, according to figures obtained by GigaOm. Based on the settlement payments publishers have already shelled out, it looks like Apple might have to pay $500 million to the states and class action lawyers in the case.
Amazon is beating Apple in the eBooks racket by using Apple’s own pricing strategy for music.
But Apple can still clobber Amazon by out-Appling not the iTunes pricing strategy, but the Apple marketing strategy: Create a vastly better user experience for both content creators and content consumers! Oh, and focus on audio.
Here’s how.
Following a lengthy trial, U.S. District Judge Denise Cote has today ruled that Apple conspired to raise the price of e-books. Another trial for damages will follow at a later date, Reuters reports.
If you’re a science fiction or fantasy fan, and you own an iPad, Android tablet, or other e-reader device, you owe it to yourself to check out the second annual Humble eBook Bundle, with a fantastic selection of genre books ready to go, DRM-free. Oh, and you can pay what you want for them, as well. Which includes, “nothing,” you skinflint.
For the past few weeks, Apple has been battling the U.S. Department of Justice (DOJ) over e-book pricing. The federal antitrust trial revolves around the DOJ’s accusation that Apple conspired with the country’s five biggest publishers to raise prices on e-books and stifle competition with Amazon.
Apple’s face for the trial has been its head of software and services, Eddy Cue. The trial has revealed some tidbits concerning Steve Jobs and the early negotiations surrounding the iBookstore. The trial ends today, but the court’s sentence for Apple has yet to be decided.
Eddy Cue is at the Daniel Patrick Moynihan United States Courthouse in lower Manhattan testifying in the Department of Justice’s e-books antitrust case, and he’s been sharing more information on the work that went into developing iBooks prior to its launch in 2010.
Cue reveled that Steve Jobs, then Apple’s CEO, chose to give away a free copy of Winnie-the-Pooh not just because he liked the book, but because its colorful illustrations showcased the capabilities of digital e-books in the iBooks app.
iBooks has been a big successful venture for Apple — despite the ongoing price fixing case from the Department of Justice — but it’s a service that may never have been if Eddy Cue hadn’t convinced Steve Jobs it would be awesome on the iPad.
Before Apple was gearing up to launch its popular tablet in late 2009, Steve Jobs wasn’t interested in the iBooks idea, and he felt e-books had no place on desktops and small smartphone displays.
Today, the fourth day of the Apple e-book anti-trust trial taking place in New York, Google’s director of strategic partnerships testified as a government witness. Thomas Turvey, under cross examination from Apple lawyer Orin Snyder, told the court that while the publishers named in the original suit had told him that they had moved to an agency model due to deals with Apple, he also acknowledged that his lawyer had helped him draft his own statement for the court, and that he was unsure of the details within the statement.
In other words, the exact opposite of what a credible witness says.
According to Russel Grandinetti, vice president for Kindle content at Amazon, publishers involved with the e-book anti-trust federal case told the Seattle-based retailer that unless Amazon agreed to their terms, it would have been barred from releasing e-books on the same day as print on Kindle, the wildly popular e-reader device that Amazon sells.
Grandinetti testified today that this ultimatum to switch to an agency model of publishing, in which the publishers set book pricing, came after the publishing houses made deals with Apple for their then new iBooks e-book service on the iPad.
David Shanks, CEO of Penguin Books, testified today that a provision in its e-books contract with Apple played a role in its decision to change contracts with other retailers, like Amazon.com, a crucial part of the US government’s case against Apple in the e-book anti-trust case happening now in federal court. Shanks said that the clause in question was “certainly a factor” in seeking out other retailers to an agency model, in which publishers control prices, not retailers, a model Amazon originally flouted.
In the anti-trust case, the US government is charging that Apple conspired with five publishers to fix prices for e-books between 2009 and 2010. Penguin is the first publishing company named in the suit which also includes HarperCollins, Simon & Schuster, Hachette Book Group, and Macmillan.
Apple has already gone on record, saying that it was the publishers that came to Apple, not the other way around.
The U.S. Department of Justice’s case against Apple has gotten underway in New York. The DOJ has accused Apple of colluding with publishers to raise the price on eBooks.
To start the trial off, the DOJ has released an 81-page slide deck containing its opening statements against Apple. The trial is expected to run for about three weeks, and both sides gave their opening arguments today.
The DOJ’s 81-page document includes a number of email between Apple execs, as well as sections of Walter Isaacon”s biography of Steve Jobs.
You can search through the DOJ’s opening arguments after the break:
With iBooks on your iPhone or iPad (or iPad mini, my favorite reading device), you can download electronic books from the convenient privacy of your very own iOS device. You never need to enter a bookstore again (sorry, Barnes & Noble!), making purchases of guilty pleasures and important intellectual tomes equally simple.
A real bookstore, though, lets you browse through the books before you buy them. Heck, you can pick one off the shelf, riffle through the pages, and even (gasp!) read some of it without paying for the book. iBooks has a way to allow you to see inside a book before purchasing it, as well, and I can’t believe I keep forgetting that the feature is there.
If you’re like me, and constantly forget about sample iBooks, here’s your reminder.
As originally pitched, iBooks looked as though it was going to dramatically shake up the way we read books: adding multimedia elements that would markedly separate it from the low-fi offering Amazon currently gives. Sadly it seems that iBooks have been somewhat forgotten in recent years. As Amazon moves into more areas that compete with Apple, it would be great to see Apple work to re-imagine a format that has stayed the same for years.
Innocent until proven guilty? Not for Cupertino. Apple’s e-book antitrust trial starts on June 3rd, but the U.S. District Judge in charge of the case is already openly expressing her belief that Apple engaged in a conspiracy.
Penguin announced this morning that the company has reached an agreement with the US State Attorneys General to pay $75 million as a settlement for the eBook price fixing claims that have been launched against Apple’s iBookstore.
US authorities have called Apple out for collusion with electronic book publishers, saying that the Cupertino-based company conspired with publishers to raise eBook prices when negotiating iBooks by playing them all against each other and against rival eBook retailer, Amazon.
Here’s Penguin’s official statement on the settlement:
According to Reuters, US authorities have called Apple out for collusion with electronic book publishers, saying that the Cupertino-based company conspired with publishers to raise eBook prices when negotiating iBooks by playing them all against each other and against rival eBook retailer, Amazon.
The US Justice Department accused Apple of price fixing in April 2012 in relation to Apple’s negotiations with five publishers when it was launching the iPad in early 2010. The Justice Department has settled out of court with each of the publishers, which included HarperCollins, Simon & Schuster, Hachette Book Group, Macmillan, and Pearson’s Penguin Group.
Apple has been ordered to compensate three Chinese writers for infringing their copyrights when it made their books available on the App Store without first seeking their permission. The Cupertino company will pay more than ¥730,000 ($118,000) for the infringement.
Last year, Apple was hit with an antitrust case from the U.S. Department of Justice over the pricing scheme of e-books in Apple’s iBookstore. Since that time, 11 executives at Apple have already been deposed over the issue, but the Department of Justice is demanding Tim Cook be involved, and they just got their way.
U.S. District Judge Denise Cote granted the Justice Department’s request to get Cook to testify on the ebook antitrust case for four hours.
Walter Isaacson, the author of the best-selling biography about Apple co-founder and former CEO Steve Jobs, will not have to share his notes or testify in an ongoing lawsuit over alleged eBook price fixing between Apple and book publishers.
Lawyers wanted to see Isaacson’s notes from interviews with Jobs in an effort to establish Apple’s agreements with publishers, but Isaacson refused to hand them over, citing a New York law that allows journalists to shield their sources.
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Apple’s iBookstore is reportedly heading to Japan this year, finally delivering its popular e-book store to the ever-growing number of Japanese iPad users. The Cupertino company is said to be in the process of negotiating deals with a “handful” of Japanese publishers to supply a local version of their titles at launch.
Apple has been having problems with Chinese writers suing for unlicensed eBook distribution in the App Store. After a group of writers asked Apple for 10 million yuan in damages for unlawfully distributing copyrighted works in certain Chinese apps, the court has forced Apple to pay a smaller settlement fee of 1.03 million yuan, which is only about $165,000.
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