Apple Colluding to Raise Price of Electronic Books

READ FULL ARTICLE AT WSJ.COM

Totally, totally gross. I am thoroughly unimpressed and to think that Apple was/is so intimately involved in this collusion. Very disappointing.

“The Justice Department has warned Apple and five of the biggest U.S. publishers that it plans to sue them for allegedly colluding to raise the price of electronic books.

Several of the parties have held talks to settle the antitrust case and head off a potentially damaging court battle. If successful, such a settlement could have wide-ranging repercussions for the industry, potentially leading to cheaper e-books for consumers. However, not every publisher is in settlement discussions…

The case centers on Apple’s move to change the way that publishers charged for e-books as it prepared to introduce its first iPad in early 2010. Traditionally, publishers sold books to retailers for roughly half of the recommended cover price. Under that “wholesale model,” booksellers were then free to offer those books to customers for less than the cover price if they wished. Most physical books are sold using this model.”

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