Apple Inc. (AAPL) Supported by Publishers In e-Book Case

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Apple Inc. (NASDAQ:AAPL) got the support of other e-book publishers like HarperCollins, Simon & Schuster, and Penguin who also think that the United States department of Justice’s latest imposed remedies are “draconian”. All these publishers have issued a legal notice opposing the actions of the department. The filing was spotted late Wednesday by The Wall Street Journal .

Apple Inc. (AAPL) Supported by Publishers In e-Book Case

Apple Inc. (NASDAQ:AAPL): DOJ overstepping

In the notice, it is stated that DoJ is “attempting to impose a specific business model on the publishing industry” even though it assured not to interfere. Earlier, Apple Inc. (NASDAQ:AAPL) was accused of price fixing after charges were filed last year. Apple has been ordered by the Justice Department to halt its present agreements with  publishers and allow other e-book retailers to link to their own stores.

Apple opposed the Justice Department decision and said that its business model is harmless. In Europe, there was a similar incident, which was settled amicably, when e-books by other publishers were allowed to be sold at cheaper rate compared to Apple Inc. (NASDAQ:AAPL) if they wish to. Evidently, the group feels that the DOJ overstepped its limits in the U.S. and seem intent to back Apple to the bitter end, says a report from Engadget.

A brief history of the case involving Apple Inc. (NASDAQ:AAPL)

Earlier on June 20th U.S. District Judge Denise Cote ruled that Apple has knowingly increased the retail price of e-books. Apple was undergoing a Manhattan-based antitrust trial  started earlier this year. Macmillan and Penguin Group were co-defendants in the case.

In its statement, the Department of Justice named Eddy Cue, Apple’s SVP of Internet Software and Services, as chief conspirator. However, Eddy Cue said that pricse were increased in 2010 during the launch of iBookstore in April 2010.

Apple Inc. (NASDAQ:AAPL), at that time, opposed the DOJ’s accusation, and said that it was trying to bring in healthy competition and this over the board proposal by the Justice Department will create a vague new compliance regime. Further, this interference will affect companies up to ten years, which will go far beyond the legal issues. The rule will hurt competition and consumers by breaking the basic principles of fairness and due process.

Apple Inc. (NASDAQ:AAPL) opposed the decision, saying “Plaintiffs’ proposed injunction is a draconian and punitive intrusion into Apple’s business, wildly out of proportion to any adjudicated wrongdoing or potential harm.”

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