N/APosted on - 04/16/2012
Is the recent information about Apple operating as the ringleader in price fixing clamor of enlisting market dominating ventures to profiteer via noncompetitive performances and artificial price inflation baseless or true?
Apple accused of acting ringleader
In order to preserve free competition and to ensure that the lowest prices possible are available for digital book readers, the U.S. Department of Justice launched an antitrust proceeding before a New York court against Apple and major publishers.
The Justice Department believes that competition is jeopardized when companies sign contracts that refer to prices charged by rivals elsewhere. The administration seeks to force the book industry to return to the model chosen by Amazon. Apple and its partners intend to demonstrate at trial that their regime, by contrast, has increased competition.
in did Apple signed these contracts that refer to prices, but does this means that it is guilty, we will have to wait the end of the trial.
Sales of digital books were close to a billion dollars last year in the United States, marking an increase of over 110% compared to 2010. By eliminating the costs of printing and delivery, the digitized book allows publishers to generate higher margins than traditional books.