American book publisher, Macmillan, signed a settlement with the United States government on Friday, February 8 in a very large antitrust case. Macmillan was the last of the five publishers in the case to settle after they were accused by authorities of planning and colluding to raise the prices of e-books. The Justice Department and the publisher delivered their agreement to a U.S. District Court located in Manhattan for the approval of a judge the same day. Macmillan was one of the smallest of the five publishers that were named in the price fixing case. Also known as Holtzbrinck Publishers LLC, the company was named in the law suit filed by the government in April 2012. At the time the larger three publishers went into a settlement with the government quickly while Pearson Plc’s Penguin Group and Macmillan held out. Pearson Plc’s Penguin Group finally settled in December as did Macmillan on Friday.
The antitrust by the Justice Department is still not over and technology giant Apple is still battling charges. The government confirmed in a statement that they would keep pursuing litigation against the maker of the iPhone as a conspirator. The Justice Department claims that Apple worked with the five publishers to raise the prices of ebooks and to try and topple Amazon.com as the king of ebook sales.
Apple denied all the accusations and claimed that it had signed agreements with each publisher separately. The company says that their was no larger conspiracy to manipulate prices. Apple has also claimed that in the case the government “sides with monopoly, rather than competition.” They believe the governments actions are stifling competition and giving Amazon the advantage in ebook sales.
Apple got support for its claims from another player in the ebook sector, Barnes & Noble Inc. The company also stated that it feels Amazon is turning into a monopoly. When the lawsuit was first filed Macmillan’s Chief Executive, John Sargent, was also of the opinion that it was a government attempt to stifle competition. He said his firm did not work in collusion with the others accused in the case and the Justice Department’s terms “would have a very negative and long term impact on those who sell books for a living.”
The agreement that the publisher and the government have proposed asks that the company “must lift restrictions on discounting by e-book retailers and must report to the Justice Department its communication with other publishers.”
With a civil trial against Apple planned for June the Justice Department stated that after the settlement they “expect the prices of Macmillan’s e-books will also decline.” This is similar to what happened with prices of ebooks after the government reached settlement with the other four publishers.
Source: The Globe and Mail
LG Sends Out Invitations for its February 25th MWC Press Event, Indicates 4 New Devices
LG Allegedly Moves Up the Release Date of Opitmus G Pro Over Samsung Galaxy S IV Launch Rumours
Lunches So Good Kids Can’t Ignore Them
Invigorating Ginger Smoothie
The U.K.’s Youngest Parents Ever
The new hair Jennifer Lawrence