Tag Archives: PriceFixing

EU regulator accepts Penguin offer to end dodgy e-book deals with Apple

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EU regulator accepts Penguin offer to end dodgy ebook deals with Apple

After the European Commission accepted offers from Apple and four publishers to free up e-book pricing restrictions in December 2012, it's now accepted Penguin's commitment to do the same. Much like Penguin's vow to the US DOJ, it will end its agency agreements with Apple and other retailers, and "most-favored nation" clauses will be absent from any new deals struck over the next five years. Most importantly, e-book retailers will now be able to control prices and discounts of Penguin's catalog for two years. This legally binding pledge essentially brings an end to EC's "competitive concerns," as all involved in the original price-fixing investigation have now settled up.

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Via: Reuters

Source: European Commission

Apple tells price fixing courtroom it owns 20 percent of the e-book market

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Apple tells courtroom it owns 20 percent of the ebook market in pricefixing case

Apple director Keith Moerer said in court on Tuesday that the company holds about 20 percent of the US e-book market, double the size commonly assumed. The revelation came after the Department of Justice tried to bolster its price fixing case against the company by asserting that "Apple forgot to focus on customers, that's why the iBookstore is a failure." Moerer responded that the online store has consistently held a 20 percent share since just after launching, adding that "sales grew 100 percent last year at the iBookstore and it had over 100 million customers." The government will continue trying to prove that Apple colluded with publishers like Macmillan and Harper Collins -- who settled out of court -- with testimony later today from Senior VP Eddy Cue.

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Via: paidContent

Source: Publishers Weekly

Macmillan settles up with DoJ, Apple now stands alone in e-book price fixing case

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It took awhile to read the writing on the wall, but Macmillan has finally settled the antitrust lawsuit brought by the US Justice Department for the publisher's alleged e-book price fixing. In doing so, Macmillan joins Hachette, HarperCollins, Simon & Schuster and Penguin in choosing not to go to trial against the DoJ's lawyers. It's an about-face from Macmillan's initial stance in settlement negotiations, when it claimed that the DoJ's terms were far too onerous.

Why settle now? Company CEO John Sargent told the Wall Street Journal that the company changed its tune not because it was guilty, but "because the potential penalties became too high to risk even the possibility of an unfavorable outcome." Should the settlement terms be approved by the court, retailers will be able to discount Macmillan titles, regardless of existing contracts, for 23 months starting from December 18, 2012. With Macmillan bowing out, Apple remains as Uncle Sam's lone legal opponent at the trial scheduled in June. Given Apple's staunch denial of wrongdoing and general willingness to litigate, it seems we may be in for some more legal fireworks this summer.

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Via: Electronista

Source: Wall Street Journal

China fines LG Display, Samsung and others over alleged price fixing

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Samsung 2012 Smart TV

Companies embroiled in display price fixing scandals aren't out of the woods just yet. China's National Development and Reform Commission has just fined six manufacturers ¥353 million ($56.7 million) for allegedly colluding on LCD prices, including Korean heavyweights LG Display and Samsung as well as Taiwan-based AU Optronics, Chungwa Picture Tubes, HannStar and Innolux. The accusations behind the latest penalty aren't quite the same as in other countries, but they share a familiar story: China believes the firms agreed to keep costs artificially high between 2001 and 2006, making ¥208 million yuan ($33.4 million) in undeserved profit. While the immediate fiscal damage will be light when it's spread across several companies, it adds to punishment that has already ranged into the hundreds of millions of dollars.

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Source: Bloomberg

Former senior manager at AU Optronics found guilty of involvement in LCD price fixing

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Former senior manager at AU Optronics found guilty of involvement in LCD price fixing

The name of Taiwanese display manufacturer AU Optronics is rarely out of the courts when LCD price fixing is involved, and now another of the company's heavyweights has been convicted for the part he played in such crimes. The US Department of Justice announced that Shiu Lung Leung, formerly a senior manager at AUO, has been found guilty for his role in a "conspiracy" which artificially raised the prices of LCD-packing gear in the US. From 2002 through to 2006, Leung is said to have been privy to secret monthly meetings with his company's competitors, where they discussed price fixing (and presumably, sinister cat stroking) in "hotel conference rooms, karaoke bars and tea rooms." Leung joins a couple of other AUO execs and many from different companies who've received similar judgments, and when sentenced, could face up to a dime in the slammer and a hefty fine -- although we doubt any of that cash will be put towards a long-overdue rebate.

Continue reading Former senior manager at AU Optronics found guilty of involvement in LCD price fixing

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Via: The Register

Source: US Department of Justice

Penguin joins publishers settling with the DOJ over e-book prices

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E-book price fixing

The US Department of Justice may have only reached settlements with three of the five major publishers it had sued for allegedly fixing e-book prices, but it's improving its track record through a new deal with Penguin. Like its peers, the firm has agreed to end any pacts that prevent it from lowering e-book prices, whether the arrangements are with Apple or any other store operator. While Penguin hasn't immediately commented on its change of heart, a company spokesperson made clear to The Guardian that an EU settlement was for "clearing the decks" ahead of a joint venture with Random House -- Penguin didn't want government scrutiny looming over its union. The truce leaves Macmillan as the last book giant still slated to go to court in the US, and it may not get much support when Apple was part of the European agreement.

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Source: Reuters

Amazon wins EU e-book pricing battle with Apple and major book publishers

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Amazon wins EU ebook pricing battle with Apple and major book publishers

The European Union has accepted an offer from Apple and four major publishers to reduce pricing restrictions on content offered at Amazon and other book-sellers. After being caught out by the EU, we heard that the offer was likely to be adopted last month, and the commission has now confirmed the settlement which, according to them, "will restore normal competitive conditions in this new and fast-moving market, to the benefit of the buyers and readers of e-books."

The new setup will let retailers set prices or discounts for two years and also drop "most-favored nation" contracts for five years. This clause had previously stopped Simon & Schuster, HarperCollins, Lagardere SCA's Hachette Livre and Macmillan from striking deals to sell e-books at other retailers at prices lower than those offered in Apple's own bookstore -- the "favored nation"

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Source: Reuters, European Commission

Samsung, Philips, LG and others reportedly set to face EU regulatory fines for CRT price fixing

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Samsung, Philips, LG and others reportedly set to face EU regulatory fines for CRT price fixing

Samsung SDI, Philips, LG, Technicolor, Panasonic and Toshiba are said to be facing heavy fines from the European Commission due to alleged involvement in a TV cathode-ray tube price fixing ring. According to Reuters, the fines will be announced on November 28th and can reach up to ten percent of the turnover during the period which the cartel was said to have ran. Based on 2011 revenues, LG could be fined up to $5 billion, while Dutch-based Philips would top out at around $2.9 billion. While the fines aren't expected to reach such heights, it will definitely take more than a few Black Friday blowout sales to recover this type of coin.

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Samsung, Philips, LG and others reportedly set to face EU regulatory fines for CRT price fixing originally appeared on Engadget on Fri, 09 Nov 2012 14:58:00 EDT. Please see our terms for use of feeds.

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EU regulators to accept Apple and book publishers’ offer of cheaper e-books

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According to Reuters, EU regulators look likely to accept an offer from Apple and a handful of publishers, including Simon & Schuster, HarperCollins, Hachette Livre and Macmillan. The assembled publishers propose that they will allow retailers (including Amazon) to sell e-books cheaper than Apple currently does. The move will attempt to end the EU's anti-trust investigation that looked into the publishers' e-book pricing model that unfairly affected retailers' ability to compete with Apple's own electronic book collection.

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EU regulators to accept Apple and book publishers' offer of cheaper e-books originally appeared on Engadget on Tue, 06 Nov 2012 09:47:00 EDT. Please see our terms for use of feeds.

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Apple and publishers offer deal to put price fixing scandal behind them in EU

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Apple and publishers offer deal to put price fixing scandal behind them in EU

In the US, the e-book price fixing scandal appears to be winding towards its inevitable conclusion. Many of the publishers settled with the DOJ right off the bat, and now the states themselves have gotten three publishing houses to cough up $69 million in their own agreement. (Of course, Apple, Macmillan and Penguin have all decided to go the trial route, but we'll have to wait till next year to see how that plays out.) In Europe, the battle is still raging on, but Reuters is reporting that the accused are offering concessions in a bid to put the antitrust allegations behind them. The only name missing from the list is Penguin, which may or may not be part of the plea deal. Not all the details of the proposals have been revealed yet, and there's no guarantee the commission will accept them. The heart of the settlement, however, would involve allowing Amazon to sell e-books at a discounted price for two years. Would cheaper Kindle books be good, clean fun for the whole family? Sure, but it certainly pales in comparison to the potential penalties if Apple and their publishing partners go to trial.

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Apple and publishers offer deal to put price fixing scandal behind them in EU originally appeared on Engadget on Fri, 31 Aug 2012 10:36:00 EDT. Please see our terms for use of feeds.

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