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Tag - Macmillan
Two of the five publishers accused of conspiring with Apple to inflate e-book prices, Macmillan and Penguin, have started issuing emails to e-book customers, informing them of rights, responsibilities, and proposed terms in the legal settlement the companies negotiated. Under current terms, the publishers would distribute approximately $162.25 million to customers who bought e-books at any digital outlet between the iBookstore's launch on April 1st, 2010 and May 21st, 2012.
The Department of Justice's antitrust case against Apple is entering its final four days this week, according to Fortune. The original orchestrator of Apple's publisher deals for the iBookstore, Eddy Cue, is resuming court testimony today, having last testified on Thursday afternoon. Today's topics are expected to include a dinner Cue had with Macmillan's CEO, and disputed emails written to Cue by former Apple CEO Steve Jobs.
Independent booksellers The Book House, Posman Books, and Fiction Addiction are suing Amazon and the "Big Six" publishers consisting of Hachette, HarperCollins, Macmillan, Penguin, Random House, and Simon & Schuster. The suit accuses the seven companies of monopolizing the e-book market by selling titles encumbered by draconian digital rights management, and says that the companies have a seeming unwillingness to enter into agreements with smaller bookstore chains or groups. The moves have limited consumers' choices, and barred independents from successfully entering the e-book market, the booksellers say.
The US Department of Justice has settled with publisher Macmillan in a long-running e-book price-fixing lawsuit, says AllThingsD. "Under the proposed settlement agreement, Macmillan will immediately lift restrictions it has imposed on discounting and other promotions by e-book retailers and will be prohibited until December 2014 from entering into new agreements with similar restrictions," a DoJ statement reads. "The proposed settlement agreement also will impose a strong antitrust compliance program on Macmillan, including requirements that it provide advance notification to the department of any e-book ventures it plans to undertake jointly with other publishers and regularly report to the department on any communications it has with other publishers. Also for five years, Macmillan will be forbidden from agreeing to any kind of most favored nation (MFN) provision that could undermine the effectiveness of the settlement."
The United States Department of Justice confirmed today that the Penguin group has made a settlement offer in New York District Court to end its ongoing e-book price-fixing antitrust investigation. If accepted by the Department of Justice and the judge, only Apple and Macmillan will remain as defendants in the suit. Under the agreement's terms, Penguin must cease doing business with any e-book seller it is currently doing business with, including Apple. The publisher will also be prohibited from signing new deals with any distributors that limit discounts for a period of two years.
Regulators with the European Union are prepared to accept a proposal by Apple and four publishers to end an antitrust investigation into ebook pricing, Reuters sources say. Under the terms of the arrangement, Apple and the publishers would let retailers set their own prices and discounts for at least two years. The deal would also suspend "most-favored nation" contracts for at least five years; in this case, for instance, it would block contracts stopping retailers from selling books more cheaply than Apple.
Book publishers Penguin and Macmillan are denying accusations of a conspiracy with Apple to fix the price of e-books, saying the claims are based on “little circumstantial evidence.” According to the New York Times, the two companies said that the US government piled “innuendo on top of innuendo” in the federal complaint, with shots also fired at Amazon by saying the government “sides with a monopolist.”
Apple on Wednesday stated that its confronting a Department of Justice lawsuit over e-book pricing was deliberate. Attorney Daniel Floyd told Judge Denise Cote that Apple believed the lawsuit was "not an appropriate case" and wanted to prove itself in court. The company wanted this to be "decided on the merits," Reuters heard while observing Floyd at a hearing.
Apple after silence through the past two days responded Thursday to the Department of Justice lawsuit over alleged e-book pricing collusion. Spokesman Tom Neumayr flatly rejected the accusations when asked for comment by AllThingsD, recapping the company's objections to the European Union that the iBookstore was beneficial as it was created. The iPad-focused store kept Amazon from having excessive control and improved e-books themselves, Neumayr said, pointing out that the move beyond the Kindle format also upgraded books themselves.
Macmillan CEO John Sargent in an open letter blasted the Department of Justice for its e-book antitrust lawsuit. He insisted that his publishing company had "done no wrong" and that he, alone, had Macmillan switch to an agency model that hiked e-book prices. Revealing more than the DOJ had mentioned itself while confirming rumors, he said talks had broken down after "months" and that the DOJ's terms would allegedly let Amazon go back to the wholesale model and unfairly dominate through artificially low prices.