The Fruit of Knowledge
Posts tagged price fixing
Macmillan settles up with DoJ, Apple now stands alone in e-book price fixing case
Feb 8th
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.
Apple says e-book price fixing charges ‘simply not true,’ Macmillan also responds
Apr 13th
Not that we were expecting Apple and Macmillan to simply fess up and say, “you’re right, totally tried to circumvent the free market,” but both companies have come out swinging pretty hard against the allegations of price fixing. Apple has rejected the charges, calling them “simply not true.” A company spokesman, Tom Neumayr, went so far as to tell Reuters that Cupertino was actually fostering competition by “breaking Amazon’s monopolistic grip on the publishing industry.” John Sargent, the CEO of Macmillan, defended his company’s behavior in blog post, saying the publisher had done nothing illegal and that the concessions sought by the DOJ in settlement negotiations were “too onerous.” It looks like the next step for both is to face off with the US government in court — a daunting task, no matter how large your war chest.
Apple says e-book price fixing charges ‘simply not true,’ Macmillan also responds originally appeared on Engadget on Fri, 13 Apr 2012 12:02:00 EDT. Please see our terms for use of feeds.
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Samsung, LG and Pantech, among others, fined $40 million in Korean price fixing scam
Mar 15th
The truth in advertising is that there is none — it’s mostly all smoke and mirrors. But sometimes those illusory promises have real-world criminal intent behind them, like this latest ruling from the Korean government’s corporate regulator. In a decision handed down earlier today, that governing body found mobile phone makers LG, Samsung and Pantech, in addition to operators KT, SK Telecom and LG Upius guilty of price fixing. In what’s been framed as a case of consumer fraud, the OEMs reportedly inflated the associated costs of handsets, which were then marketed with supposed discounts by the colluding carriers. Collectively the group’s been ordered to pony up about 45.3 billion won (or $40.2 million) in fines, with the largest of those penalties belonging to Samsung at 14.2 billion won (about $12.6 million) and SK Telecom at 20.2 billion won (about $18 million). Adding further insult to this public injury is the FTC, which has taken the extra step of imposing sales restrictions that are intended to prevent the involved parties from committing future infractions. Check out the source below for the full scoop on this corporate back-scratching.
Samsung, LG and Pantech, among others, fined $40 million in Korean price fixing scam originally appeared on Engadget on Thu, 15 Mar 2012 12:08:00 EDT. Please see our terms for use of feeds.
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AU Optronics found guilty of US price fixing, appeal already in the works
Mar 14th
AU Optronics has had its name bandied about in the courtroom before, most recently in a 2009 group suit where it was targeted for LCD price fixing. ‘Course, LCD price fixing has been quite a popular pastime for a smattering of outfits, but it looks like AUO will be seeing the wrong end of the decision process here in the States. A US court found the Taiwanese company guilty in a case that could see it hit with a fine totaling as much as $1 billion. Yeah, with a b. As it goes, the outfit was charged as part of an alleged price-fixing group that operated between 1999 and 2006, but it was the only Asian LCD maker in that lot to plead not guilty. This here ruling comes after LG agreed to pay a $400 million fine in 2008, while Samsung talked itself into an early deal to sidestep prosecution. A pair of AUO execs were also found guilty, but its former CEO L.J. Chen (who is still hanging around in the top brass) was not. We’re told that the company plans to appeal — a process that could last as long as a year — but that hasn’t kept its stock price from sinking in the interim. First comes sliding LCD margins, and now the looming thought of a $1 billion slap on the wrist; suddenly, your woes don’t seem so bad, huh?
AU Optronics found guilty of US price fixing, appeal already in the works originally appeared on Engadget on Thu, 15 Mar 2012 02:38:00 EDT. Please see our terms for use of feeds.
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