Court Rules Apple Broke Antitrust Law in Scheme to Raise E-Book Prices

Texas and thirty-two other states have won an antitrust victory against Apple. A federal court ruled Apple colluded with publishers illegally to raise the price of electronic books.

Judge Denise Cote of the Southern District of New York ruled Apple conspired with five major US publishers in the E-books price fixing scheme. The litigation stemmed from a two-year investigation conducted by the Texas and Connecticut Attorney Generals' Offices and the US Department of Justice.

Darren Bush teaches antitrust law at the University of Houston Law Center.

"Apple was kind of stubborn and went ahead with trial, but the publishers had settled. So Apple was kind of going alone.  And it's fairly significant in terms of finding liability. Of course, we still have a hearing on remedies coming up into concluding damages."

The trial had featured testimony from executives for Apple and the five publishers, as well as Amazon.com. Apple and the publishers argued that Amazon was using its dominant retail position unfairly to drive down the price of E-books.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...