Well, Apple “broke that monopoly” by conspiring with six of the major book publishers (i.e., engaging in anti-trust activity) in a way that raised the prices of eBooks to consumers. This case is definitely not that.
I’m a bit conflicted by this. Since Apple does not allow any other way to purchase or install third party apps to consumers on iOS, I might hope that the court rules that their commission must be limited strictly to the cost of providing that service to developers and consumers, rather than just setting a fee of 30%, which may not reflect Apple’s actual cost to provide this service. (I’m not sure, though, that the court would be empowered to make such a ruling in this case. This seems to be a case of whether particular consumers have standing to file a lawsuit only.)
peternlewis:
This didn’t affect the results of the Amazon/Apple case some years ago where Apple broke the monopoly and was penalised for it.
Well, Apple “broke that monopoly” by conspiring with six of the major book publishers (i.e., engaging in anti-trust activity) in a way that raised the prices of eBooks to consumers. This case is definitely not that.
Apple actually lowered the prices, which is what ticked Amazon off. After the decision Amazon, through pressure from publishers, raised prices and ebook sales have been falling since then.
I’m a bit conflicted by this. Since Apple does not allow any other way to purchase or install third party apps to consumers on iOS, I might hope that the court rules that their commission must be limited strictly to the cost of providing that service to developers and consumers, rather than just setting a fee of 30%, which may not reflect Apple’s actual cost to provide this service. (I’m not sure, though, that the court would be empowered to make such a ruling in this case. This seems to be a case of whether particular consumers have standing to file a lawsuit only.)
The courts cannot do anything to fix prices. What they can do is rule on price fixing, restraint of trade, etc.
This is probably not the place to discuss this, but that is not really what happened. See United States v. Apple Inc. - Wikipedia. for the facts (Apple’s and the “big six” collusion resulted in higher, not lower, prices.)
MMTalker:
Apple actually lowered the prices, which is what ticked Amazon off. After the decision Amazon, through pressure from publishers, raised prices and ebook sales have been falling since then.
This is probably not the place to discuss this,
At the WWDC, Tim Cook made a big deal about renaming and redesigning iBooks into a whole new Books app and hiring a publishing/audiobooks industry big shot after years of ignoring iBooks in the wake of the Supreme Court decision. I suspect Books could become a part of what will be a very big content play that will influence Apple’s hardware and software development. There’s potential for VR, AR, gaming, music (esp. with the recent music publishing announcement), cars, licensing, etc. that will help sell new devices and services. It might even help the education initiative, although I still think this will pretty much go nowhere.
You’re right about prices initially falling after the Supreme Court decision. But Amazon started raising its prices not long afterwards, and eBook sales have subsequently fallen while physical book sales have improved.
peternlewis:
MMTalker: