6
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

CNET News Video: DOJ announces suit against Apple, publishers over e-book pricing

About Video Transcript

CNET News Video: DOJ announces suit against Apple, publishers over e-book pricing

2:57 /

At a press conference in Washington, D.C., Attorney General Eric Holder and Assistant Attorney General for the Antitrust Division Sharis Pozen announce the government's lawsuit against Apple and publishers for allegedly conspiring to increase prices that consumers pay for e-books. Note: Simon & Schuster and CNET are both owned by CBS.

We are alleged that executives at the highest levels of the companies included in today's lawsuits concern the eBook sellers had reduced prices work together to eliminate competition among stores selling eBooks, ultimately increasing prices for consumers. You know, as a result of this alleged conspiracy, we believe that consumers paid millions of dollars more for a serve of the most popular titles. During regular, near quarterly meetings, we alleged that publishing company executives discussed confidential business and competitive matters including Amazon's eBook retailing practices as part of a conspiracy to raise, fix, and stabilize retail prices. In addition, we alleged that these publishers agreed to impose a new model which would enable them to cease pricing authority from bookstores, that they entered into agreements to pay Apple a 30% commission on books sold through its iBook Store, and that they promised to have contracts including the most favored nation provisions that no other book retailer would set a lower price. Now, our investigation even revealed that a CEO allegedly went so far as to encourage an eBook retailer to punish another publisher for not engaging in these illegal activities. We alleged that CEOs of the publishers bemoaned the retched 9.99 price point. One executive said that the goal is less to compete with Amazon as to force it to accept a higher level than 9.99; and yet another, we've always known that unless other publishers follow us, there's no chance of success in getting Amazon to change its pricing practices. Our complaint also quotes, Apple's then CEOs do jobs as saying the customer pays a little more but that's what you want and he's referring to the publishers, that's what you want anyway. As you can see, we allege that these executives knew full well what they were doing, that is taking steps together to make sure the prices consumer paid for eBooks were higher. I wanna stress, agreements between companies that are reached unilaterally generally are legal and appropriate; however, let me be clear, when companies get together and conspire to enter into agreements that eliminate price competition, it crosses the line; this kind of agreement is illegal and anti-competitive, and that's when the Antitrust Division will take action, and that's what we've done today.

New releases

McLaren P1: Harbinger of the hybrid supercar revolution (CNET On Cars, Episode 58)
23:31 January 30, 2015
McLaren P1 on the track and on the street, CNET Style. How engines get their names and what it means. Also: CNET's Top 5 cars of last...
Play video
Boost's ZTE Speed is a 4.5-inch, low-priced Android
1:07 January 30, 2015
Featuring a 5-megapixel camera, a quad-core CPU, and a 4.5-inch display, the ZTE Speed is one of Boost's prepaid bargain Androids.
Play video
The LaCie Mirror is perfect for narcissists
2:14 January 30, 2015
CNET editor Dong Ngo totally likes what he sees when looking at the one-of-a-kind LaCie Mirror portable drive. And that's because (you...
Play video
Rid your Android quick settings menu of oddball toggles
1:17 January 30, 2015
CNET's Dan Graziano shows you how to fix one of the most annoying features in Android 5.0 Lollipop.
Play video
Beats Pill XL: Bigger Bluetooth speaker justifies its premium price
1:25 January 30, 2015
We weren't such big fans of Beats' original Pill, but the company's jumbo-sized model is well designed and performs much better.
Play video
Facebook using beacons to show location 'tips'
2:50 January 30, 2015
Social network's new app feature sends location tips to your feed using GPS, Wi-Fi and Bluetooth beacons. Meanwhile, your home Internet...
Play video
Testing out 'Insane Mode' in the Tesla P85D, Ep. 190
4:28 January 30, 2015
This week we get all nostalgic with the Prynt smartphone case that makes your iPhone work like a Polaroid camera, we learn some scary...
Play video
Nvidia G-Sync is a smooth move for PC games
3:01 January 30, 2015
The right graphics card and a G-Sync monitor can make games look better.
Play video