It was only a matter of time before the vultures of the Federal Government descended on Apple- one of the brightest examples of Capitalism at work one can find.
They beat on Microsoft. Now it’s Apple’s turn.
I’m trying to figure out what is so “anti-trust” about publishers making deals with book retailers. Barnes & Noble does it. Amazon does it, Wal Mart does it. But Apple is a ripe target.
the publishers were attacking amazon. Apple actually colluded with the publishes to break amazon and use set prices (see price fixing) and more all ebooks to the istore.
There is merit to the case. I bet the people who are in that department of the doj are the parked lawyers who are not given plumb assignments of protecting black pathers or attacking republicans or “investigating” those who expose voter fraud.
Starting out with the acknowledgement that I don’t think that there’s any place in the Constitution for anti-trust prosecution, if they are going to abuse the copyright clause’s directive to make it limited time and turn it into infinite, then I suppose this is the end result...
ANYWAY, Apple colluded with the major publishers to establish agency pricing and ban the wholesale sale of books. The theory is that the publishers merely decided to no longer sell eBooks, but instead are selling licenses to read them. This, therefore, is the foundation for the legality of the agency pricing. Since it is a license, it doesn’t really matter what the product is, or who made it, they’ve set a price for that, and offer those who wish to sell those licenses (and administer them) a commission of 30% of the retail price.
This is price fixing to me. Wouldn’t mind the investigation broadening a bit into Apple’s software market. Because every legal argument used against Microsoft over the years applies in spades to Apple.
You are missing the crux of the crime.
Barnes & Noble didn't.
Amazon didn't.
Wal Mart didn't
Apple did...
Make, as a condition of a contract with the publishers, that the publishers could not offer books to anyone else on the existing model, only on the "new" monopolistic Apple model.
Apple deserves whatever slam they get. They played that game for decades, with the stuff they manufacture and the economic morons are free to buy their stuff. But forcing all other manufacturers to adapt Apple's high-pricing model or not do business with suppliers is a no-no in anyone's notion of non-predatory business.