Apple, Publishers May Face Suit Over E-Book Pricing

CUPERTINO (CBS SF) – The Justice Department has threatened to sue Apple and five other major publishers for allegedly colluding to raise the price of e-books.

The publishers expected to be named in the lawsuit are HarperCollins Publishers, Hachette Book Group, Macmillan Publishers, Penguin Group, and Simon & Schuster (owned by CBS), according to the Wall Street Journal.

KCBS’ Matt Bigler Reports:

Apple and the other companies have not responded to requests for comment.

Several of the publishers have reportedly entered discussions with regulators to head off an expensive antitrust court battle. A settlement would likely impact other publishers not connected to the suit, according to analysts.

The Justice Department action comes after another suit filed against Apple and e-book publishers last year that alleged the companies forced consumers to pay higher prices because of an “agency model” where publishers set their own e-book prices, rather than a traditional wholesale model.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

More from Matt Bigler
Comments

More From CBS San Francisco

Music's Biggest Night
Your Bay Area Guide To Valentine's Day

Listen Live