More than two years after Apple was forced to pay out $450 million to resolve an e-books antitrust case, the tech giant has informed shareholders that it’s agreed to stipulations for settlement of a lingering derivative complaint, reports AppleInsider.
In the notice to shareholders Apple’s considerations include a more involved audit and finance committee, enhanced synergy between the antitrust compliance officer and other corporate bodies, antitrust compliance training, yearly reviews and more. In addition, the company has agreed to modify its proxy statement to indicate that “antitrust compliance experience” will be a factor in considering candidates when a new director position opens. Apple also agrees to adopt an antitrust compliance program similar to measures instituted after it lost the iBooks antitrust case, including the installation of an executive in charge of antitrust compliance.
Let’s back up and look at history of the whole matter. In April 2012 the United States Department of Justice filed an antitrust lawsuit against Apple, Hachette SA, HarperCollins, Macmillan, Penguin and Simon & Schuster in New York district court, claiming collusion over ebook pricing. The brouhaha centered on Apple’s move to change the way that publishers charged for e-books as it prepared to introduce its first iPad in 2010.
Traditionally, publishers sold books to retailers for roughly half of the recommended cover price. Under that “wholesale model,” booksellers were then free to offer those books to customers for less than the cover price if they wished.
Apple suggested moving to an “agency model,” under which the publishers would set the price of the book and Apple would take a 30% cut. However, Apple also insisted that publishers couldn’t let rival retailers sell the same book at a lower price.
In October 2015 Apple asked the U.S. Supreme Court to overturn an appellate court decision that found the company conspired with five publishers to increase e-book prices. The Cupertino, California-based company wanted the high court to review a June ruling that favored the U.S. Department of Justice, and found the company liable for engaging in a conspiracy that violated federal antitrust laws. However, in February 2016, a federal appeals court has upheld Apple’s $450 million settlement.
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