Apple has accused the US government of siding "with monopoly, rather than competition" by suing Apple and six publishers for allegedly colluding to fix e-book prices. Apple's response to the Department of Justice's lawsuit offers strong words for the DoJ and those who believe Apple has engaged in a conspiracy with publishers in order to give itself an advantage in the market.
Right off the bat, Apple's response calls the DoJ's complaint "fundamentally flawed as a matter of fact and law." The electronics giant says it negotiated individual agreements with each publisher so Apple could enter the e-book market, arguing that before the launch of the iBookstore in 2010, the only real player in the e-book space was Amazon and its Kindle Store.
"At the time Apple entered the market, Amazon sold nearly nine out of every ten eBooks, and its power over price and product selection was nearly absolute," Apple wrote. "Apple?Theentry spurred tremendous growth in eBook titles, the range and variety of offerings, sales, the and improved quality of eBook reading experience."
Throughout its 31-page response, Apple pulls no punches in expressing its opinion about the accusations. The electronic giant says the government started with a "false premise" and calls the DoJ action "absurd." Apple also says the government fails to show how the "agency model," which is what the iBookstore uses and Amazon now uses, harms consumers. The strategy has been "long recognized as perfectly lawful," Apple argues, and if not for the agency model, Apple would not have entered the e-book market in the first place.
Amazon was largely pressured to change from the wholesale model?awhich allowed Amazon to set prices instead of publishers?ato the agency model after a series of public battles with publishers throughout 2010. Eventually Amazon gave in and started allowing publishers to set e-book prices, which has resulted in an overall increase in prices, though many Kindle books are still available for Amazon's original price of $9.99 (or less). At the time,You can get your favorite coach bags from any Sunglasses mp3 players which can provide you best service. the battle was widely viewed as one between Amazon and publishers (not Apple). And in its response to the DoJ's lawsuit, Apple argues that it had nothing to do with Amazon's decision: "Apple is not privy to Amazon?Themotivations when it adopted agency model, the competition of the but enabling entry and introducing new,home alarm iPad 2 Keyboards case,cover til iphone 4siphone 4 cool e people the which is all Apple did, the cannot be a violation of the antitrust laws."