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Tag - Penguin
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.
Testimony on the second day of Apple's trial as a defendent against the US Department of Justice on allegations of conspiracy to raise book prices appears to have gone reasonably well for the Cupertino-based electronics giant, with some mixed but friendly testimony from Penguin Group USA CEO David Shanks. Though he admitted that it was "irrational enthusiasm" for the potential 80-100 million strong customer base Apple had at the time that led Penguin to accede to many of Apple's terms during negotiations over its contract, he also defended some aspects of Apple's role.
Publisher Penguin and parent company Pearson have proposed a settlement with 33 US State Attorneys General and other plaintiffs for $75 million to resolve its lawsuit accusing it of price fixing in conjunction with Apple and the iBookstore. If accepted by the judge, the settlement resolves all antitrust complaints against Penguin related to the suit on the state level.
In order to end an antitrust investigation by the European Commission, Pearson-owned book publisher Penguin has offered to drop e-book deals with Apple that inflated prices for Amazon and other vendors, Reuters reports. Penguin is the fifth publisher to settle, joining Simon & Schuster, HarperCollins, Hachette, and Macmillian, which along with Apple reached a settlement with the Commission in December.
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 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.
Penguin books is to start lending e-books again in the near future, if reports are to be confirmed. Working with distributor Baker and Taylor, the digital books will be available to borrow from Los Angeles and Cleveland-based libraries, though rule changes surrounding the new lending system compared to previous iterations will force libraries to buy a new copy of the book every year.
Penguin and Random House have announced they will merge to become the world's biggest English-language book publisher. This is likely a result of the ever-growing and competing e-book market, though neither admits it. Under the terms, Random House will own 53 percent of Penguin Random House, while Penguin will take the rest.
Book buyers in 49 states and five territories are poised to receive $69 million as a result of civil suit settlement accusing Hachette, HarperCollins, and Simon & Schuster of collusion with Apple, Macmillan, and Penguin. If the settlement is approved by Judge Denise Cote, the three publishers will partially reimburse consumers who bought agency-priced e-books between April 1, 2010 and May 21, 2012.
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.”