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US: Which publisher sided with feds in e-books case?

By  |  June 5, 2013

As the price-fixing e-books lawsuit filed by the US Department of Justice against Apple Inc. continues this week, the latest development saw Penguin publisher – which settled with authorities over allegations the company participated in the supposed conspiracy – side with US regulators in court. Penguin testified on Tuesday to argue that Apple included a most-favored-nation clause in its contract with the publisher that partially lead Penguin to change contracts with other e-book retailers like Amazon. Penguin CEO David Shanks testified that the clause, which allowed Apple to match the lowest prices of rivals, was a factor in Penguin’s decision to move those rival retailers to an agency model, thereby giving pricing power to the publisher.

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