Supreme Court denies Apple appeal in e-books price fixing case

The company will pay $450 million in a settlement, with most of the money going to e-book buyers

Apple will pay US$450 million as a settlement for e-book price fixing after the U.S. Supreme Court declined to hear the company's appeal of a lower court's antitrust ruling.

The Supreme Court's decision Monday ends Apple's appeal of the antitrust case against the company and five book publishers and upholds a June 2015 antitrust ruling at the U.S. Court of Appeals for the Second Circuit.

Apple had agreed in 2014 to pay a $450 million settlement in the case, brought by the Department of Justice and 33 states and territories in 2012, if the company did not win its appeals. Late last year, the company asked the Supreme Court to take up the case.

The DOJ accused Apple, Hachette Book Group, HarperCollins Publishers, Macmillan, Penguin Group and Simon & Schuster of conspiring to raise prices in retaliation for Amazon.com pricing most e-books at $9.99 beginning in late 2007.

Apple and the publishers conspired to set e-book prices at $12.99 and $16.99, the DOJ alleged. In early 2010, publishers agreed to shift to a new pricing model where they set the prices for e-books, instead of retailers, the agency charged.

Most of the money from Apple -- $400 million -- plus another $166 million settlement from the publishers, will go back to e-book purchasers, the DOJ said. The other $50 million in Apple's settlement covers lawyers' fees and payments to states.

Most e-book purchasers will receive reimbursement for the higher prices they paid through automatic credits at their e-book retailers, the agency said in a press release.

"Apple’s liability for knowingly conspiring with book publishers to raise the prices of e-books is settled once and for all," Assistant Attorney General Bill Baer of the DOJ's Antitrust Division, said in a statement. "And consumers will be made whole."

Apple did not immediately response to a request for comments on the Supreme Court's denial of its appeal.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?