The Glade 4.0

"Turn the lights down, the party just got wilder."
It is currently Thu Mar 21, 2019 6:50 pm

All times are UTC - 6 hours [ DST ]




Post new topic Reply to topic  [ 15 posts ] 
Author Message
PostPosted: Wed Jul 10, 2013 1:34 pm 
Offline
The Game Master.
User avatar

Joined: Wed Sep 02, 2009 10:01 pm
Posts: 3670
http://www.wired.com/gadgetlab/2013/07/ ... ce-fixing/

Quote:
Federal Court Finds Apple Guilty of E-Book Price Fixing

By Alexandra Chang
07.10.13
11:58 AM


A federal judge today ruled that Apple is guilty of violating antitrust law by conspiring with major publishers to raise e-book prices. The Justice Department originally brought charges against five publishers and Apple in 2012. All of the publishers — Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster — agreed to settlements in early 2013, leaving Apple alone to face trials.

“The Plaintiffs have shown that the Publisher Defendants conspired with each other to eliminate retail price competition in order to raise e-book prices, and that Apple played a central role in facilitating and executing that conspiracy,” federal judge Denise Cote stated in her ruling. “Without Apple’s orchestration of this conspiracy, it would not have succeeded.”

Cote goes on to further detail how Apple and its co-conspirators aimed join forces against Amazon, who had cornered the market with its standard price of $9.99 per book. Apple and publishers agreed to use a so-called agency model, which gave publishers, not retailers, the power to determine e-book prices. Along with the agency model, Apple introduced a “Most-Favored-Nation” clause, which would guarantee that Apple could match the lowest price of e-books available on competing stores and also impose fines on publishers if they could not get Amazon and other retailers to agree to the agency model.

All five publishers went to Amazon asking to switch to the agency model. Macmillan, for example, gave Amazon two options. “[CEO John] Sargent advised Amazon on January 28 that it had just two options: either (1) move to an agency arrangement or (2) not receive Macmillan’s Kindle versions of New Releases for seven months thus forcing Amazon to raise its own prices and forfeit its pricing advantage,” the ruling stated. With pressure coming from five major publishers, Amazon eventually agreed to the agency model, thus forcing the company to raise its own prices and forfeit its pricing advantage.

Apple was the mastermind behind the conspiracy, Judge Cote ruled. “Apple seized the moment and brilliantly played its hand. Taking advantage of the Publisher Defendants’ fear of and frustration over Amazon’s pricing… Apple garnered the signatures it needed to introduce the iBookstore at the Launch,” she says. “It provided the Publisher Defendants with the vision, the format, the timetable, and the coordination that they needed to raise e-book prices.”

The agreement between Apple and publishers, Cote says, pushed e-book prices up as much as 50-percent and provided Apple with a new revenue source, “changing the face of the e-book industry.” A trial on damages will follow, she says.

“This result is a victory for millions of consumers who choose to read books electronically,” Assistant Attorney General Bill Baer of the DOJ’s Antitrust Division, said in a release. “Companies cannot ignore the antitrust laws when they believe it is in their economic self-interest to do so. This decision by the court is a critical step in undoing the harm caused by Apple’s illegal actions.”

It’s no surprise, however, that Apple remains firm in its declaration of innocence, already voicing plans to appeal the ruling. “Apple did not conspire to fix e-book pricing and we will continue to fight against these false accusations. When we introduced the iBookstore in 2010, we gave customers more choice, injecting much needed innovation and competition into the market, breaking Amazon’s monopolistic grip on the publishing industry. We’ve done nothing wrong and we will appeal the judge’s decision,” Apple spokesman Tom Neumayr told AllThingsD.

The trial highlights the industry’s bumpy transition from print to electronic books. As readers opt for e-books over print, publishers are struggling to maintain revenue and control. Working with Apple at least gave them the ability to raise prices, but it also offers a glimpse of how a powerful retailer could run away with a given industry. But Apple’s defense attorney Orin Snyder argued in his last day in court that a ruling against Apple would set a “dangerous precedent.” It could hurt the way retailers negotiate with the media industry by preventing retailers from striking deals with multiple companies at once, or even mentioning other deals in place. He said this would have a “chilling and confounding effect not only on commerce but specifically on content markets throughout this country.”

The five books publishers have, however, agreed to end the agency pricing model for two years and to end the “most-favored-nation” clause with Apple and other retailers. To that end, consumers can potentially look forward to lower e-book prices

_________________
“The duty of a patriot is to protect his country from its government.” - Thomas Paine


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Wed Jul 10, 2013 2:12 pm 
Offline
I got nothin.
User avatar

Joined: Thu Sep 03, 2009 7:15 pm
Posts: 11160
Location: Arafys, AKA El Müso Guapo!
BAHAHAHAHAHA!!!

**** Apple.

_________________
Image
Holy shitsnacks!


Top
 Profile  
Reply with quote  
PostPosted: Wed Jul 10, 2013 2:24 pm 
Offline
Web Ninja
User avatar

Joined: Wed Sep 02, 2009 8:32 pm
Posts: 8244
Location: The Tunt Mansion
Great, now we just need to find every hard back educational book publisher guilty of the same thing.


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Wed Jul 10, 2013 2:33 pm 
Offline
Noli me calcare
User avatar

Joined: Thu Sep 03, 2009 10:26 am
Posts: 4747
OMG absolutley, Lenas.

_________________
"Dress cops up as soldiers, give them military equipment, train them in military tactics, tell them they’re fighting a ‘war,’ and the consequences are predictable." —Radley Balko

Image


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Wed Jul 10, 2013 2:36 pm 
Offline
The Dancing Cat
User avatar

Joined: Wed Nov 04, 2009 2:21 pm
Posts: 9254
Location: Ohio
^ Thirded.

_________________
Quote:
In comic strips the person on the left always speaks first. - George Carlin


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Wed Jul 10, 2013 3:10 pm 
Offline
The Game Master.
User avatar

Joined: Wed Sep 02, 2009 10:01 pm
Posts: 3670
I don't think book publishers for textbooks do price fixing.

I think they're unethical in 1,000,000 other ways, and that professors are somehow complicit

_________________
“The duty of a patriot is to protect his country from its government.” - Thomas Paine


Top
 Profile  
Reply with quote  
 Post subject: Re:
PostPosted: Wed Jul 10, 2013 3:35 pm 
Offline
I got nothin.
User avatar

Joined: Thu Sep 03, 2009 7:15 pm
Posts: 11160
Location: Arafys, AKA El Müso Guapo!
Hopwin wrote:
^ Thirded.


Fourtheded.

_________________
Image
Holy shitsnacks!


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Wed Jul 10, 2013 7:00 pm 
Offline
Manchurian Mod
User avatar

Joined: Fri Sep 04, 2009 9:40 am
Posts: 5844
Textbook publishers are price-fixing.

I understand it's popular to hate Apple, but you're going after the wrong party. It's the publishers that need to get hammered.

_________________
Buckle your pants or they might fall down.


Top
 Profile  
Reply with quote  
 Post subject: Re:
PostPosted: Wed Jul 10, 2013 10:21 pm 
Offline
The Game Master.
User avatar

Joined: Wed Sep 02, 2009 10:01 pm
Posts: 3670
Corolinth wrote:
I understand it's popular to hate Apple, but you're going after the wrong party. It's the publishers that need to get hammered.


They plea'd out.

_________________
“The duty of a patriot is to protect his country from its government.” - Thomas Paine


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Thu Jul 11, 2013 12:33 am 
Offline
Manchurian Mod
User avatar

Joined: Fri Sep 04, 2009 9:40 am
Posts: 5844
Yes, I read that part. More accurately, they settled. That's actually the problem. They really are price-fixing, and that's why they settled. They're price-fixing in what is currently a much larger market, and they're making sure no judge looks too closely at that.

By going after Apple, we're ensuring that the price-fixing is going to continue much longer. Whatever ruling happens with Apple, it's going to slow down adoption of e-readers in the market where the price-fixing is most egregious. This perpetuates the price-fixing problem in the physical market, and allows them to refine their price-fixing scheme for re-entry into the digital market.

I'm not saying Apple isn't party to the price-fixing, and that they shouldn't be penalized for it. Going after Apple is still the sucker play, and everyone's buying into it.

_________________
Buckle your pants or they might fall down.


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Thu Jul 11, 2013 8:01 am 
Offline
The Game Master.
User avatar

Joined: Wed Sep 02, 2009 10:01 pm
Posts: 3670
But how would you fix that? Plea bargains are legal.

_________________
“The duty of a patriot is to protect his country from its government.” - Thomas Paine


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Thu Jul 11, 2013 10:13 am 
Offline
Manchurian Mod
User avatar

Joined: Fri Sep 04, 2009 9:40 am
Posts: 5844
Well, seeing as how physical books and electronic books are different markets, it is not double jeopardy to investigate the physical book market structure.

I'm not sure it's a stretch to initiate such an investigation, either. If you look at book pricing, you will see that a Calculus textbook, which is a Freshman level course taken by vast quantities of students nationwide, carries the same price tag as Junior and Senior level science textbooks. If you assume that those upper level science textbooks are priced appropriately given their specialized nature and limited audience, it's not hard to spot that there's something fishy going on with the pricing of lower level books.

_________________
Buckle your pants or they might fall down.


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Thu Jul 11, 2013 2:27 pm 
Offline
Oberon's Playground
User avatar

Joined: Thu Sep 03, 2009 9:11 am
Posts: 9441
Location: Your Dreams
The way I see it, five dead-tree publishers did settle out of court for their actions in this. So yeah, the publishing industry is price fixing.

But Apple price fixing?

/GilbertGottfried On
Oh there's a big surprise. I think I'm gonna have a heart attack and die from not surprised.
/GilbertGottfried Off

_________________
Well Ali Baba had them forty thieves, Scheherezade had a thousand tales
But master you in luck 'cause up your sleeves you got a brand of magic never fails...
...Mister Aladdin, sir, What will your pleasure be?
Let me take your order, Jot it down -You ain't never had a friend like me

█ ♣ █


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Thu Jul 11, 2013 4:11 pm 
Offline
Bull Moose
User avatar

Joined: Wed Sep 02, 2009 7:36 pm
Posts: 7494
Location: Last Western Stop of the Pony Express
Water is wet!
Gravity sucks!
Everyone dies! Eventually . . .

Apple greedy? This is amazing news! Not.

_________________
The U. S. Constitution doesn't guarantee happiness, only the pursuit of it. You have to catch up with it yourself. B. Franklin

"A mind needs books like a sword needs a whetstone." -- Tyrion Lannister, A Game of Thrones


Top
 Profile  
Reply with quote  
 Post subject: Re:
PostPosted: Sun Aug 04, 2013 9:38 am 
Offline
Home of the Whopper
User avatar

Joined: Thu Sep 03, 2009 8:51 am
Posts: 6098
Micheal wrote:
Water is wet!
Gravity sucks!
Everyone dies! Eventually . . .

Apple greedy? This is amazing news! Not.


Yep.

_________________
"Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own." Jesus of Nazareth


Top
 Profile  
Reply with quote  
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 15 posts ] 

All times are UTC - 6 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 1 guest


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron
Powered by phpBB® Forum Software © phpBB Group