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Judge: Apple not learning its e-book ‘lessons’ Print Email
Written by Jeremy Burns   
Thursday, 29 August 2013 05:57 PM America/New_York

iPad_mini_inHand_Wht_iOS6_PRINTDespite ‘blatant and aggressive disregard’ for antitrust laws, Apple its likely to receive lighter penalties than feared in its e-book case.

The latest news in the unfolding price-fixing case forecasts a slightly less dim situation for the tech giant than the draconian penalties the Department of Justice (DOJ) had initially suggested. U.S. District Judge Denise Cote’s final ruling is still expected to come down hard on Apple, whose reactions to the case are not doing the company any favors.

“Apple has been given several opportunities to demonstrate to this court that it has taken the lessons of this litigation seriously,” Cote said. “I am disappointed to say that it has not taken advantage of those opportunities.”

While the five publishing groups involved in the alleged price-fixing conspiracy—HarperCollins Publishers, Penguin Group, Macmillan, Hachette Book Group, and Simon & Schuster—chose to settle their case with the DOJ, Apple took its case to court. Judge Cote ruled against the company in July, finding Apple guilty of breaking antitrust laws.

“The record at trial demonstrated a blatant and aggressive disregard at Apple for the requirements of the law,” she said. “Apple executives used their considerable skills to orchestrate a price-fixing scheme that significantly raised the prices of e-books.”

Cote said that Apple must also hire an external monitor to ensure it does not engage in price-fixing again. This will complement the injunction prohibiting the company from entering into similar agreements and giving e-book competitors more options for their apps on Apple’s iOS devices.

The DOJ’s original brief recommended a 10-year injunction, which Cote has shortened to five years. Cote has also allayed fears that the injunction would apply to Apple’s agreements with suppliers in other media categories, such as music, movies, and TV shows, stating that she wants “this injunction to rest as lightly as possible on how Apple runs its business.”

Other elements in the DOJ’s recommendation and how they will be implemented are still up in the air. Cote is expected to issue her final ruling for the injunction against Apple next week.