FOXNews.com: US files suit against Apple, publishers over e-book price-fixing

FOXNews.com FOX News Network - We Report. You Decide. // via fulltextrssfeed.com

US files suit against Apple, publishers over e-book price-fixing Apr 11th 2012, 14:19 DEVELOPING: The U.S. Department of Justice (DOJ) filed an antitrust lawsuit in against Apple early Wednesday over alleged e-book price-fixing. Several publishers, Hachette SA, HarperCollins, Macmillan, Penguin and Simon & Schuster, were also included in the suit, which claims that Apple and publishers "conspired to limit pricing competition," according to a WSJ report, costing consumers "tens of millions of dollars" more for e-books. CBS Corp.'s Simon & Schuster, Lagardère SCA's Hachette Book Group and News Corp.'s HarperCollins could settle as early as today in order to avoid a costly legal battle. But Apple, Macmillan, and Pearson Plc's Penguin Group are looking to deny price collusion and are prepared to fight the charges, Bloomberg reported. Representatives of Simon and Schuster, Harper Collins, and Penguin -- reportedly all named in the suit -- contacted by FoxNews.com did not immediately have any comment. Part of the problem is the 30 percent commission Apple is guaranteed on each e-book sale, the so-called agency model that allows publishers instead of vendors set book prices, Bloomberg reported. The government would prefer retailers return to the wholesale model which puts pricing decisions in the hands of retailers. Such a settlement could also kill many of Apple's "most-favored nation" clauses, like the one that requires book sellers to match their lowest prices for their friends in Cupertino. Apple did not immediately respond to FoxNews.com requests for comment.

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