Apple refuses e-book pricing scheme

The giant company, Apple, had refused charges that the company had schemed with publishers to increase costs for e-books, describing itself as a hero for prying Amazon’s “monopolistic grip” from the market.

In a statement issued by an official from the company, Tom Neumayr said, “The DOJ’s accusation of collusion against Apple is simple not true.”

Tom Neumayr gave this statement a day after a Department of Justice antitrust suit was filed.

Further, Tom Neumayr said, “The launch of the iBookstore in 2010 fostered innovation and competition, breaking Amazon’s monopolistic grip on the publishing industry.”

Meanwhile, the Justice Department sued Apple and five other publishing companies saying a conspiracy to increase costs as well as limit competition for e-books. The company soon announced a partial settlement in the case.

Media person said, “Three of the publishers agreed to end the scheme to force retailers such as Amazon to accept a new pricing plan that ended their ability to offer discounts for electronic books.”

On the other hand, the Hachette Book Group, HarperCollins and Simon & Schuster have found a middle way though the case will proceed against Apple and the other two — Macmillan and Penguin Group — the Justice Department said, “For conspiring to end e-book retailers’ freedom to compete on price.”

Attorney General Eric Holder said, “As a result of the conspiracy, consumers paid millions of dollars more for some of the most popular titles, and competition was eliminated.”

Before the launch of Apple’s iPad, online retail company Amazon sold many electronic versions of new best sellers for $9.99.

The suit said that after Apple’s “agency” model was launched in the market, the prices increased to $12.99 and higher, and price competition among retailers was “unlawfully eliminated.”

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