The U.S. proposed revised remedies against Apple Inc. (AAPL) to help preserve competition in sales of electronic books after a judge indicated the original proposals were too strong.
Under the revisions, an injunction targeting Cupertino, California-based Apple would expire in five years after its approval by U.S. District Judge Denise Cote, instead of 10 years as in the original plan.
Cote, at a hearing Aug. 9 on the government’s initial proposal, suggested that Apple be required to hold staggered negotiations with book publishers, so that the technology company wouldn’t be in talks with more than one publisher at a time. The U.S.’s revised proposal includes such staggered terms, starting in two years.
Cote ruled in July after a non-jury trial that Apple, the maker of the iPhone and iPad, had conspired with five book publishers to fix prices of e-books. At the Aug. 9 hearing, Cote told the parties to discuss remedies and then return for another hearing. A second trial will be held to determine monetary damages, which lawyers have said may amount to hundreds of millions of dollars.
Under the original proposal, the U.S. sought a court-appointed external antitrust compliance officer to monitor the company for 10 years. The revised plan reduces that period to five years.
The case is U.S. v. Apple Inc., 12-cv-02826, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Don Jeffrey in New York at [email protected].
To contact the editor responsible for this story: Michael Hytha in San Francisco at ‘ mhytha @bloomberg.net
Under the revisions, an injunction targeting Cupertino, California-based Apple would expire in five years after its approval by U.S. District Judge Denise Cote, instead of 10 years as in the original plan.
Cote, at a hearing Aug. 9 on the government’s initial proposal, suggested that Apple be required to hold staggered negotiations with book publishers, so that the technology company wouldn’t be in talks with more than one publisher at a time. The U.S.’s revised proposal includes such staggered terms, starting in two years.
Cote ruled in July after a non-jury trial that Apple, the maker of the iPhone and iPad, had conspired with five book publishers to fix prices of e-books. At the Aug. 9 hearing, Cote told the parties to discuss remedies and then return for another hearing. A second trial will be held to determine monetary damages, which lawyers have said may amount to hundreds of millions of dollars.
Under the original proposal, the U.S. sought a court-appointed external antitrust compliance officer to monitor the company for 10 years. The revised plan reduces that period to five years.
The case is U.S. v. Apple Inc., 12-cv-02826, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Don Jeffrey in New York at [email protected].
To contact the editor responsible for this story: Michael Hytha in San Francisco at ‘ mhytha @bloomberg.net