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US: As Macmillan signs $20M settlement, Apple left standing against DOJ

By  |  February 13, 2013
US: As Macmillan signs $20M settlement, Apple left standing against DOJ

While reports surfaced in previous days that the Department of Justice had settled with the final e-book publisher Macmillan in its price-fixing case, details are just now emerging about what exactly will be the repercussions for Macmillan. According to reports, Macmillan has settled a consumer class action suit for price-fixing, agreeing to pay up to $20 million. While Macmillan is the final e-book publisher to settle with the Department of Justice – leaving Apple Inc. the last entity in the fight with the authority – consumer class actions have yet to be settled with Penguin and Apple, though reports say a trial is scheduled for June of this year. US District Judge Denise Cote, who is overseeing the case, must officially approve of Macmillan’s $20 million settlement, but if done-so, reports say that customers affected by the price-fixing could see payments as soon as this spring.

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    Now that Apple is the last-remaining body in a longstanding trial brought by the DOJ against e-book price-fixers, speculation is mounting over the implications of Apple’s decision to continue fighting the charges. The DOJ has settled with the remaining five parties, the most recent being publisher Macmillan, and a June 3 date is set for a trial with Apple. According to reports, the Justice Department will not seek monetary damages but instead wants a judicial decree stating Apple violated US antitrust law and barring Apple from making similar agreements with other companies – the DOJ is accusing Apple of making agreements with e-book publishers to keep e-book prices at a certain point. Apple also faces a class action suit brought on by consumers; the Consumer Federation of America estimated last year that the damages of the e-book price fixing amounted to more than $200 million in 2012.

     

    Full Content: Publishers Weekly and Reuters

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