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.
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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.
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.
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."
A new document filed in the e-book price-fixing suit accuses Apple of conspiring to hike prices, but the tech giant denies these claims, saying it was actually partaking in constant one-on-one negotiations.
The tech giant's potential purchase could help it compete in an area dominated by Amazon's prized e-book business, according to TechCrunch.
The settlement comes less than a month before the scheduled beginning of the trial, in which $840 million in damages was sought from Apple.