Apple agrees to $400 Million settlement in ebook price fixing scandal

Attachment 2228

Apple has denied the ebook price fixing scheme thrown at it in the past and filed a court appeal in 2013 regarding the case. Today, however, the Cupertino, California company’s decided to pay $400 million to put an end to the allegations.

It’s been said that Apple used the introduction of its iPad in 2010 to work with five companies – HarperCollins, Hachette Book Group, MacMillan, Penguin, and Simon & Schuster – to raise ebook prices rather than charge a flat rate for its iBook collection.

The five book companies that are implicated with Apple already agreed to a $166 million settlement for customers back in 2013.

Apple’s ebook price fixing scandal has one obstacle on the table at the moment: the company’s 2013 appeal. It could be the case that Apple’s appeal is approved; if so, consumers will get very little from the case and Apple won’t owe anywhere near $400 million. If, on the other hand, Apple’s appeal is denied, the company will owe the $400 million that’s been agreed to in this new settlement.

Apple’s willingness to settle the class-action lawsuit, filed by 33 states, has some tech analysts scratching their heads. After all, if Apple is innocent, why file an agreement to simply “put an end” to it all? On the other hand, some companies settle because bad publicity can put a dent into sales – even if it’s a small one