Judge rules Apple conspired to raise e-book prices

A federal judge yesterday ruled Apple Inc. illegally conspired with five major publishers to raise electronic book prices.

U.S. District Judge Denise Cote ruled Apple colluded with the companies to undercut Amazon.com Inc. by conspiring to artificially raise prices by fixing them for best-sellers at $12.99 and $14.99.

The ruling follows settlements reached in 2012 and 2013 with publishers Penguin Group Inc., Hachette Book Group Inc., HarperCollins Publishers LLC, Simon & Schuster Inc. and Holtzbrinck Publishers LLC, dba Macmillan. Apple disputed the charges, choosing instead to face a trial.

"The totality of the evidence leads inextricably to the finding that Apple chose to join forces with the publisher defendants to raise e-book prices and equipped them with the means to do so," Cote said in her 159-page decision, noting the defendants sought to put pressure on Amazon.com Inc. and its $9.99 prevailing price for best-selling e-books.

The trial took place June 3-20. Cote set an Aug. 9 hearing to discuss remedies and plans to pursue damages.

Apple has disputed the findings, saying it will appeal the judge's decision.

“Apple did not conspire to fix e-book pricing and we will continue to fight against these false accusations. We’ve done nothing wrong," corporate spokesman Tom Neumayr said in a statement.