Apple Inc. (AAPL): Did Eddy Get His Cue in E-book Price Fixing?

Apple Inc. (NASDAQ:AAPL) is starting to make its case in defense against allegations of price-fixing in the e-book marketplace  in a high-profile trial in New York against the U.S. Department of Justice, which brought up the allegations against Cupertino and five book publishers.

Apple Inc (AAPL)As is well-documented, the five e-book publishers all settled out-of-court with Justice to avoid a trial, but Apple Inc. (NASDAQ:AAPL)  - which Justice is trying to portray as the “ringleader” in the collusion – has held out and is wanting to make its case in court that it is innocent of the charges that it conspired with the -e-book publishers to artificially hike e-book prices  to undermine e-book retail sales leader Amazon.com, Inc. (NASDAQ:AMZN).

Much of the focus of Apple’s case  may hinge on complaints made by Amazon.com about the hike in e-book pricing and that it initiated the probe by Justice, which is trying to tie a change in the pricing model by the publishing houses to be consistent in timing with the publishing contracts the five publishing houses reached with Apple for its iBookstore.

The latest case in favor of Apple Inc. (NASDAQ:AAPL) took the stand Thursday, as longtime Steve Jobs confidant and Apple vice president Eddy Cue, who headed up negotiations with the book publishers, spoke about his role in the negotiations.

He maintained that his job was to work on a deal with the publishers to allow their e-books to be sold in the iBookstore. Not only did he deny any collusion or conspiracy charges as he went about his negotiations, but he claimed that he negotiated with each publisher separately and did not even know that the publishers had even talked to each other about book pricing or deals with Apple until after he had heard about the Department of Justice investigation into the price-fixing scheme.

Cue went on to say that the publishers talked with Apple about their “Amazon problem” during iBookstore negotiations, referring to the low price that Amazon.com, Inc. (NASDAQ:AMZN) was charging for e-books. “They expressed to us that they wanted higher prices,” Cue said. He worked out a deal with the publishers so that they would sell their e-books in the iBookstore for as much as $14.99, but insisted that late CEO Steve Jobs was “indifferent” to how the deals would affect Amazon as he paid close attention to Cue’s negotiations.

What are your thoughts? How do you think Apple Inc. (NASDAQ:AAPL) will come out at the end of this trial, and how do you think its reputation will be affected regardless of the result?  Give us your thoughts about this case in the comments section below.

DISCLOSURE: None

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!