Apple: U.S. government’s e-book antitrust lawsuit ‘is fundamentally flawed as a matter of fact and law’

“Apple Inc is rejecting charges that it conspired to fix prices of electronic books, calling the U.S. government’s antitrust lawsuit a ‘fundamentally flawed’ endeavor that could discourage competition and harm consumers,” Jonathan Stempel reports for Reuters. “The Justice Department accused Apple in April of colluding with five publishers to boost e-book prices in early 2010, as the Silicon Valley giant was launching its popular iPad tablet. Amazon, which makes the Kindle e-reader, had long sold e-books for as little as $9.99. The government complaint quoted Apple’s late co-founder Steve Jobs as wanting to offer publishers a means to boost prices, and “create a real mainstream e-books market at $12.99 and $14.99.”

“In a filing in U.S. District Court in Manhattan late Tuesday, Apple said it has not conspired with anyone or fixed prices for e-books in an effort to thwart Amazon.com Inc’s dominance of that fast-growing market,” Stempel reports. “Apple argued that its foray into e-books has actually fueled demand for e-books by forcing Amazon and rivals, including Barnes & Noble Inc, to compete more aggressively, including by upgrading e-reader technology. ‘Apple’s entry into e-book distribution is classic pro competitive conduct’ that created competition where none existed, Apple said in its court papers.”

Stempel reports, “‘For Apple to be subject to hindsight legal attack for a business strategy well-recognized as perfectly proper sends the wrong message to the market,’ it added. ‘The government’s complaint against Apple is fundamentally flawed as a matter of fact and law.’ Apple also denied that the government “accurately characterized” the comment attributed to Jobs.”

Read more in the full article here.

MacDailyNews Take: As we wrote the day the DOJ filed their lawsuit, “The U.S. DOJ is plainly inept.”

[Thanks to MacDailyNews Reader “Fred Mertz” and “Dan K.” for the heads up.]

Related articles:
Video: Steve Jobs predicted or knew of publisher revolt – May 17, 2012
Federal Judge rejects Apple and publishers’ attempt to dismiss civil case alleging e-book price-fixing – May 15, 2012
Court documents reveal Steve Jobs email pushing e-book agency model; 17 more states join class action suit – May 15, 2012
Apple vs. Amazon: Who’s really fixing eBook prices? – April 17, 2012
Apple: U.S. DOJ’s accusation of collusion against iBookstore is simply not true – April 12, 2012
Apple not likely to be a loser in legal fight over eBooks – April 12, 2012
16 U.S. states join DOJ’s eBook antitrust action against Apple, publishers – April 12, 2012
Australian gov’t considers suing Apple, five major publishers over eBook pricing – April 12, 2012
DOJ’s panties in a bunch over Apple and eBooks, but what about Amazon? – April 12, 2012
Antitrust experts: Apple likely to beat U.S. DOJ, win its eBook lawsuit – April 12, 2012
Why the market shrugged off the Apple antitrust suit – April 11, 2012
What’s wrong with the U.S. DOJ? – April 11, 2012
Macmillan CEO blasts U.S. DOJ; gov’t on verge of killing real competition for appearance of competition – April 11, 2012
U.S. DOJ hits Apple, major publishers with antitrust lawsuit, alleges collusion on eBook prices – April 11, 2012
U.S. DOJ may sue Apple over ebook price-fixing as early as today, sources say – April 11, 2012

38 Comments

  1. • Jimmy Carter – son of peanut farmer – Distinguished graduate of USNA – President of the US
    • Bill Clinton – product of poor, broken home – Rhodes Scholar Oxford Univ, Yale Law School – President of the US
    • Barack Obama – product of broken home – Columbia Univ – Harvard Law – President of the US

    vs

    GHWB – son of wealth – Yale legacy admission – Washington insider – President of the US
    GWB – son of wealth – Yale legacy admission – failed CEO in oil and sports – deserter from TANG – President of the US (his brother counted the ballots in the state that put him over the top)
    Willard – son of wealth – Harvard JD/BS Baker Scholar (nobody says he’s not smart) – made billions by stealing working peoples pension funds and destroying their companies – champion of health care mandates as Gov of Massachusetts, professed opponent of the same as part of a national plan – thinks he should be President of the US

    I’ll take the products of the American Dream. Entitled rich guys never help the rest of us very much.

    1. Come on quiviran— I like the small comparison…

      what about the 2 worst presidents ever…one born in a log cabin, the other born into poverty…look up Andrew Johnson and James Buchanan…and FYI- Carter ranks near the bottom of most pools for worst presidents…

      1. Carter let his Christian values get in his way. He was way too kind to people to be an effective President by most measures. I still like him because, even though he is an Evangelical (not in name only), he wasn’t afraid to tell the “Evangelical” universities they would not be getting any federal funds if they continued to discriminate in admissions (this was the late ’70s, a mere 10 years after the Civil Rights Act). Which is the real reason he gets such bad marks.

  2. Does competition always has to result in bottom-feeding prices? This is the most fundamental flaw in the DoJ’s thinking. There are many factors that go into competition. If competition is only based on cheap prices, then there won’t be any BMWs, Macintoshes and many other high-end products. In truth, cheap prices are a lazy way to grab market share without doing any innovation. One just has to copy the innovators’ works without having to spend on research. This is what Samsung does. If this dung head AG has his way, it will strike a blow to true innovation in the US.

Add Your Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.