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e-Book publishers shell out $69 million in price-fixing allegation case

Posted by Jason Diaz Categories: Apple, Corporate News

Apple Amazon DOJ antitrust ebook suit

In the midst of Apple and ebook publishers collusion allegations brought forth by the Department of Justice (DoJ), Massachusetts Attorney General, Martha Coakley (Democrat), is tossing in her hat by filing a civil antitrust lawsuit. Three book publishers are shelling out over $69 million, $2 million of which is going to Massachusetts customers, to settle out of court. The ongoing lawsuit alleges that Apple got together with publishers and devised a plan to raise ebook prices in Apple's own iBookstore, which is in direct competition with Amazon's Kindle ebook store. Amazon is known for selling it's ebooks at rock-bottom prices, often at the expense of publishers and authors. So, although it appears that the DoJ's lawsuit greatly benefits consumers, who it really benefits is Amazon. Look at it this way: Amazon makes its lion share of money from many different sources, therefore, it can afford to sell ebooks at a loss since consumers buying through Amazon Kindle are exposed to advertisement promoting everything else they sell. Meanwhile, other booksellers are going out of business unable to compete, inadvertently creating a monopoly where Amazon reigns supreme. In the long run, who is this really benefiting? The way I see it, the DoJ lawsuit, although good intentioned, will eventually have the opposite effect of what its trying to achieve; and while now it appears to benefit consumers, in the end, Amazon wins.

Ebook publishers Macmillan and Penguin have not settled and Apple vowed to fight the allegations in court.

Read More | Boston Globe

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AT&T drops plans to acquire T-Mobile

AT&T T-Mobile dead

AT&T on Monday announced that it has ended its bid to acquire T-Mobile.

AT&T will incur a pre-tax "breakup fee" of $4 billion in the fourth quarter and will enter into a roaming agreement with T-Mobile's parent company, Deutsche Telekom.

AT&T maintained that the deal would have benefited the U.S. wireless industry. But in recent months, it faced challenges from the Department of Justice and Federal Communications Commission, both of which found that the merger would not be in the public's interest. That opposition, however, does "not change the realities of the U.S. wireless industry," AT&T said.

"AT&T will continue to be aggressive in leading the mobile Internet revolution," Randall Stephenson, AT&T chairman and CEO, said in a statement. "To meet the needs of our customers, we will continue to invest."

Click to continue reading AT&T drops plans to acquire T-Mobile


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