Apple faces possible May 2014 trial on ebook damages

The federal judge who ruled that Apple Inc violated antitrust law by conspiring with five major publishers to raise prices of ebooks has scheduled a May 2014 trial to determine damages, according to an order made public on Wednesday.

Absent an earlier resolution, U.S. District Judge Denise Cote in Manhattan would be expected at the trial to consider whether Apple should pay damages that could reach hundreds of millions of dollars.

Last month, Cote sided with the federal government and 33 U.S. states and territories in concluding that Apple conspired with the publishers to undermine pricing by rivals including Amazon.com Inc, which dominates the market for electronic books.

The schedule for a possible trial on damages calls for the government and Apple to wrap up their interviews with experts by December 13. Court papers on whether to certify a class of plaintiffs must also be fully submitted by that date.

"These are the dates we proposed so we are pleased," said Steve Berman, a lawyer for the plaintiffs.

Apple spokesman Tom Neumayr declined immediate comment.

Cote had ruled on July 10 that Apple played a "central role" in the conspiracy with the five publishers, which the government said caused typical prices for top-selling ebook titles to rise from the $9.99 that Amazon would charge to $12.99 or $14.99.

The judge is also considering injunctive relief to prevent Apple from engaging in another price-fixing conspiracy.

At a hearing last Friday, she said she would consider a plan to restrict the contracts that the Cupertino, California-based company could enter with the publishers over a five-year period, but with lesser restrictions than the governments had proposed.

She was also hesitant about the government's proposal that Apple retain a court-appointed external monitor, saying she preferred a strong internal antitrust compliance program.

The publishers include Lagardere SCA's Hachette Book Group Inc, News Corp's HarperCollins Publishers LLC,Penguin Random House LLC, CBS Corp's Simon & Schuster Inc, and Verlagsgruppe Georg von Holtzbrinck GmbH's Macmillan. All have settled with regulators.

The case is U.S. v. Apple Inc et al, U.S. District Court, Southern District of New York, No. 12-02826.

US proposes remedy for Apple ebook price-fixing

Apple Inc deserves a five-year ban from entering anti-competitive ebook distribution contracts and should end its business arrangements with five major publishers with which it conspired to raise ebook prices, federal and state regulators said on Friday.

The U.S. Department of Justice and 33 U.S. states and territories proposed those changes after U.S. District Judge Denise Cote in Manhattan last month found in a civil antitrust case that Apple played a "central role" in a conspiracy with the publishers to raise ebook prices.

Regulators also want Apple for two years to let retailers such as Amazon.com Inc and Barnes & Noble Inc provide links to make it easier for consumers to compare prices.

They also want Apple to use an outside monitor to ensure that its internal antitrust compliance policies are strong enough to catch illegal conduct before consumers are harmed. The proposed changes require Cote's approval.

"Under the department's proposed order, Apple's illegal conduct will cease, and Apple and its senior executives will be prevented from conspiring to thwart competition," said Bill Baer, head of the Justice Department's antitrust division.

Apple did not immediately respond to requests for comment. It has said it did not conspire to fix ebook prices and that it planned to appeal Cote's decision.

(Also see: Apple vows to appeal ebooks case verdict)

Regulators accused Apple of conspiring to undercut Amazon.com's ebook dominance, causing some prices to rise to $12.99 or $14.99 from the $9.99 that Amazon.com was charging.

(Also see: Apple clashes with Amazon in ebook case)

They said the alleged collusion had begun in late 2009 and continued into early 2010, as Cupertino, California-based Apple was launching its popular iPad tablet.

The publishers included Lagardere SCA's Hachette Book Group Inc, News Corp's HarperCollins Publishers LLC, Pearson Plc's Penguin Group (USA) Inc, CBS Corp's Simon & Schuster Inc and Verlagsgruppe Georg von Holtzbrinck GmbH's Macmillan.

Only Apple went to trial, while the publishers agreed to pay more than $166 million for the benefit of consumers.

A hearing to discuss remedies is scheduled for August 9. Cote has said she also plans to hold a trial on damages.

The case is U.S. v. Apple Inc et al, U.S. District Court, Southern District of New York, No. 12-02826.

Penguin pledges to scarp ebook deals with Apple

EU regulators accepted on Thursday a pledge by British media group Pearson's Penguin unit to scrap its ebook deals with Apple which set price curbs on Amazon and other retailers, closing an antitrust case against the company.

Penguin offered in April to end "most-favoured nation" contracts for five years. Such clauses bar rival retailers from selling ebooks more cheaply than Apple.

It also proposed to let retailers set prices or discounts for a period of two years. The concessions are similar to those offered by four other publishers last year.

The European Commission said the publishers' offer would boost the ebook market.

"After our decision of December 2012, the commitments are now legally binding on Apple and all five publishers including Penguin, restoring a competitive environment in the market for ebooks," European Competition Commissioner Joaquin Almunia said in a statement.