Will states and consumers sue Apple over e-book prices?(Read article summary)
This summer a judge ruled that Apple arranged a conspiracy with major publishers to raise e-book prices. Now Apple faces a class action lawsuit from plaintiff states and a consumer class.
Nearly four months after a federal judge ruled that Apple broke anti-trust laws by conspiring with publishers to increase e-book retail prices, Apple is seeking to stop a pending class action lawsuit that could result in the company's having to pay millions in damages.
According to Publishers Weekly, Apple filed a motion last week arguing that a class action lawsuit pressed by plaintiff states and a consumer class was invalid. As it stands, Apple may have to pay up to $307 million in damages, based on a Stanford economist’s estimates.
In a July 10 decision, US District Judge Denise Cote ruled that Apple orchestrated a conspiracy with five major publishers to raise e-book prices in competition with Amazon. Apple had led an agreement with major publishers to set e-book pricing via the agency model, whereby publishers set the price on e-books (as opposed to the traditional wholesale model, where the distributor or retailer sets prices). Under its plan, Apple raised e-book prices, Cote said.
Now, a class-action lawsuit is being brought against Apple that could result in the company's having to pay more than $300 million in damages to consumers.
Apple is trying to quash the class action suit. Here’s how: