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United States v. Apple, Inc.

952 F. Supp. 2d 638 (2013)

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United States v. Apple, Inc.

United States District Court for the Southern District of New York
952 F. Supp. 2d 638 (2013)

Facts

The six largest American publishing companies (the publishers) (defendants) shared a common goal of ending Amazon’s $9.99 retail price for e-books, which the publishers considered too low. Apple, Inc. (defendant) was aware of this. Before launching its iPad product, which enabled the reading of e-books, Apple met with the publishers to discuss a business model in which the publishers themselves would set the retail price for e-books. Apple and the publishers entered agreements to that effect. After the release of the iPad, the publishers threatened to withdraw their books from Amazon if Amazon did not agree to let the publishers set their own retail prices in a manner similar to their arrangement with Apple. The United States Department of Justice (the United States) (plaintiff) and several individual states (plaintiffs) brought suit against Apple and the publishers, alleging violation of the Sherman Antitrust Act and seeking injunctive relief. The publishers settled with the United States and the states prior to trial.

Rule of Law

Issue

Holding and Reasoning (Cote, J.)

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