Apple named in e-book price-fixing scheme

The U.S. Justice Department said Wednesday it has filed a lawsuit against Apple Inc. and five book publishers for colluding to fix prices for electronic books. At a news conference in Washington, Attorney General Eric Holder said the suit was filed in the Southern District of New York against the electronics giant and publishers Hachette, HarperCollins, Simon & Schuster, Macmillan and Penguin. The first three publishers, Holden said, had already agreed to a proposed settlement, leaving Apple, Macmillan and Penguin to face further litigation. The settlement includes allowing retailers, \"such as Amazon and Barnes & Noble, the freedom to reduce the prices of their e-book titles,\" Holden said. In addition, the companies have agreed to discontinue \"anti-competitive most-favored-nation agreements with Apple and other e-books retailers,\" he said. The Justice Department alleges \"executives at the highest levels of the companies … worked together to eliminate competition among stores selling e-books, ultimately increasing prices for consumers.\" The \"conspiracy\" began in the summer of 2009 with executives holding \"regular, near-quarterly meetings\" to discuss confidential business matters, the department said. \"Make no mistake, the antitrust laws are flexible and can keep pace with technology and a rapidly changing industry,\" acting Assistant Attorney General Sharis Pozen said in prepared remarks. However, she said, chief executive officers of the publishers \"bemoaned the \'wretched $9.99 price point.\'\" She quoted one CEO as saying, \"The goal is less to compete with Amazon as to force it to accept a price level higher than 9.99.\" She also attributed a quote to the late Steve Jobs, a co-founder and CEO at Apple. Jobs allegedly said, \"The customer pays a little more, but that\'s what you want anyway.\"