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Everything You Need To Know About Apple’s E-Book Antitrust Trial With The DOJ

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Eddy Cue, Apple's Mr. Fix-It, leaving a New York courtroom like an OG. Photo: Apple
Eddy Cue, Apple's Mr. Fix-It, leaving a New York courtroom like an OG. Photo: Apple

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.

Why Steve Jobs Loved Winnie The Pooh

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Steve Jobs at Apple iPad Event
Steve Jobs at Apple iPad Event
Photo: Wikimedia Commons

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.

Eddy Cue Had To Convince Steve Jobs That iBooks Would Be Awesome On iPad

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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.

Google Exec’s Testimony Hurts Government Case In Apple E-Book Trial

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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.

Executive Testifies That Publishers Gave Amazon An Ultimatum After E-Book Deal With Apple

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Interesting tag-line, really.
Interesting tag-line, really.

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.

Penguin Books CEO Bolsters Government Case Against Apple In E-Book Case

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A delicate ecosystem. Right.
A delicate ecosystem. Right.

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.

Here Is The Department Of Justice’s Opening Statement Against Apple For E-Book Price Fixing

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gavel-court-hammer-judge-lawsuit

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:

Frugal Readers Can Access Free Sample iBooks On The iPhone And iPad [iOS Tips]

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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.

Judge In Apple E-Book Antitrust Case Thinks Apple Is Guilty, Even Before Trial Starts

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Apple recently got < a href=
Apple recently got < a href="http://www.cultofmac.com/283918/read-apple-settles-ebook-pricing-suit/">bitten for its book-selling efforts, so it’s understandable if the company was a bit trepidatious about setting out to revolutionize publishing, but its pretty clear that digital books can do a helluva lot more than Kindle is currently making possible.

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 Pays $75 Million Settlement In Apple eBook Price Fixing Case

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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:

Apple Responds To eBook Conspiracy Charges, Blames Publishers

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ibookstore

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 CEO Tim Cook Has Been Ordered To Testify In E-Book Antitrust Case

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Going nowhere.
Going nowhere.

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.

Steve Jobs Biographer Walter Isaacson Dropped From eBook Price Fixing Case

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Walter Isaacson isn't in Jony Ive's good books.
Walter Isaacson isn't in Jony Ive's good books.

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.

Boost Sales With The Copy Hackers E-book Bundle [Deals]

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CoM - CopyHackers

You don’t have to become a copywriter – or hire one – to turn your website into a cash machine. You just need the right tools. You’ve already got the development skills. You’ve already got the product or service.

This Cult of Mac Deals offer will give you the next thing you’ll need in your arsenal: The Copy Hackers E-Book Bundle. And we’re offering it to you for 53% off the regular price – just $35!

Apple To Finally Bring iBookstore To Japan This Year

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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 Forced To Pay Chinese Writers Small Settlement In eBook Copyright Dispute [Report]

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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.

Ending Soon! The Mobile App Design Starter Kit [Deals]

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CoM - Mobile Design Kit

App making is competitive as ever and it’s only going to get more so. Apps are an awesome opportunity for entrepreneurs to turn an idea into a profitable product with little monetary investment. The problem is, everyone knows this and is trying to get their piece of the pie.

With that in mind, The Mobile App Design Starter Kit is exactly what any independent app creator needs to get ahead of the game.

There are a lot of great ideas hidden behind terribly designed apps. We all know the typical reasons for poor design – pricey professional designer prices, lack of themes, or mobile app design just being difficult in general – but what this Cult of Mac deal offers is a comprehensive kit that includes everything you need to give your app a snazzy design that will make it stick out among the competition for only $57.

Aim Higher With The Bolster Your Business E-Book Bundle [Deals]

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CoM - Business eBook Bundle

There’s a lot of competition out there in the business world, and the best way to keep ahead of the game is to your mind finely tuned with knowledge. This Cult of Mac Deals offer won’t only serve to sharpen your business mind, but it won’t soften up your wallet in the process.

This e-book bundle isn’t just a step in the right direction, it’s a leap in the right direction! With over 750 pages of insightful information, your career will make huge advances with what you’ll find within those pages. And you’ll get the entire Bolster Your Business E-book Bundle for just $40 for a limited time!

Amazon Wins EU Anti-Trust Battle Against Apple’s Ebook Pricing

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ibookstore

After an anti-trust lawsuit was launched by the European Union earlier this year to check whether or not Apple’s e-book pricing is anti-competitive, Apple and four publishers are ready to accept an offer from the EU to end the probe.

The acceptance of the offer hands Amazon a big victory in the battle for e-book pricing in Europe as it opens the door for Amazon to continue to sell online books cheaper than its rivals.

Build Your Knowledge And Business With The Online Entrepreneur eBook Bundle [Deals]

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CoM - The Online Entrepreneur eBook Bundle

There are a lot of budding entrepreneurs that are taking their ideas online – but many of them do not have the tools or skills to make a real go of it. Simply surfing the web looking for tips and tricks isn’t enoguh these days, you need to have more at your disposal than that. And Cult of Mac Deals has put together a deal that will really help out anyone who is looking to build their knowledge – and a business – online.

The Online Entrepreneur eBook Bundle contains three eBooks that will help turn your website into a marketing dynamo. And you’ll get them for just $20!

New Ruling Continues To Let You Legally Jailbreak Your iPhone, But Not Your iPad [Jailbreak]

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The US Copyright Office reviews the Digital Millennium Copyright Act every three years, looking at requests to create temporary changes that act as ersatz loopholes int he law, typically to address continually changing technology standards. This year, the Copyright Office allows jailbreaking of devices like the iPhone, but not for devices like the iPad.

The Office also ruled that consumers can unlock phones purchased before January 2013, but not thereafter. You’ll also be albe to bypass encryption on a DVD to use an excerpt in a non-commercial way, like in a documentary, but it will still be illegal to rip a DVD for your iPad.

The rules seem pretty arbitrary, right?