Sunday, March 11, 2012

Apple responds to ebook price fixing claims


Apple has denied the company's part in recent claims of ebook price fixing that was said to "squelch" the dominant Amazon Kindle

Apple has hit out at claims that it illegally plotted to up the price of eBooks with a new court filing declaring it had no intention to "squelch" rival Amazon.

Although largely failing to confront claims that it conspired with publishers to raise the prices of eBooks, the Apple statement has suggested the company had no plans to target the likes of the market dominating Amazon Kindle with its iBooks platform.

"This allegation just strings together antitrust buzzwords," the Apple statement said. It added: "Nor does this "Kindle theory" make sense on its own terms. For example, if Amazon was a "threat" that needed to be squelched by means of an illegal conspiracy, why would Apple offer Amazon's Kindle app on the iPad?

"Why would Apple conclude that conspiring to force Amazon to no longer lose money on ebooks would cripple Amazon's competitive fortunes?

"And why would Apple perceive the need for an illegal solution to the "Kindle threat" when it had an obvious and lawful one which it implemented – namely, introducing a multipurpose device (the iPad) whose marketing and sales success was not centred on ebook sales?"

With the antitrust case set to be taken up by the US Department of Justice, Apple is looking to distance itself from the five major publishers that have been taken to court.