The electronics titans square off in a tangled tale of mobile technology, centered on Apple's iPhone
The settlement hinges on the success or failure of the company's appeal of a ruling that found it conspired with publishers to fix prices.
An external monitor will be in place for two years to ensure that Apple complies with the court's orders. But the judge excluded other remedies the government had suggested.
After the Justice Department revised proposals to reform Apple following its e-books conspiracy conviction, the company calls the latest remedies a "broadside" favoring rival Amazon.
The US Department of Justice says it's willing to cut the length of an injunction against Apple in half to five years but says having an external monitor is required.
A U.S. judge shies away from the government's calls for an external monitor to keep tabs on Apple, but suggests staggering publisher deals to prevent collusion and slaps Apple's wrist for not being contrite.
The tech giant's potential purchase could help it compete in an area dominated by Amazon's prized e-book business, according to TechCrunch.
But Barnes & Noble is neck-and-neck with the electronics giant and sometimes surpasses Apple's market share in digital books, the high-level Apple executive said during testimony in court.
The settlement comes less than a month before the scheduled beginning of the trial, in which $840 million in damages was sought from Apple.
At the start of the three-week trial, the DOJ argues Apple was the ringleader in the e-book pricing plan. Apple, meanwhile, says "this is a bizarre antitrust case."
The petition sought emergency stay pending the resolution of an appeal concerning the case's class status.