Justice Department Getting Close To Settling E-Book Prices With Apple

Posted Mar 31, 2012

The Justice Department is getting closer to reaching an agreement with Apple Inc. and major book publishers. Apple and the publishers are suspected of colluding with each other to push up the prices of e-books. The settlement is expected to eliminate the “most favored nation” status for Apple.

The “most favored nation” status prevents Amazon and Barnes & Noble from selling lower-priced e-books. The settlement may at least temporarily give control from publishers to the retailers.

The five publishers include Simon & Schuster Inc, Hachette Book Group, Penguin Group (USA), Macmillan, and HarperCollins Publishers Inc. Amazon.com was able to charge $9.99 or many e-books including new releases or popular e-books.