Apple's settlement in an e-book price-fixing case may not be exactly settled, at least as far as a judge in the case is concerned. The terms of the settlement are what concern her.
Apple began a court process after a case against the company alleged that it engaged in price fixing by colluding with publishers to sell e-books under market value. Apple thought it reached a final settlement in the matter.
United States District Judge Denise Cote expressed her concern over the proposed $450 million settlement arrangement, according to reports. The judge called into question certain elements of the settlement proposal such as a clause requiring the tech company to only pay $70 million in damages if the judge's finding was reversed in an appeals court, sending it back to her for review if the later court ruled the company did not violate antitrust laws.
This troubled the judge because consumers wouldn't get a fair deal out of the settlement. Apple was found guilty of price fixing, a charge that the company continues to deny. The judge was also concerned that if an appeals court challenged her ruling on a minor issue, then consumers would suffer as a result. Out of the $70 million, the compensation fund would receive $50 million. She also questioned why the company shouldn't be paying interest while appeals go forward, according to another report.
More than 30 states and class action attorneys submitted the settlement for Cote's approval just a week ago. Apple seeks to avoid an Aug. 25 trial for damages requested from the class action lawyers. Cote ruled in July that the company was liable for colluding with publishers to stifle competition from other e-book dealers like Amazon.com. If an appeals court reverses Cote's ruling outright, Apple would not be required to pay a cent.
Attorneys general from the states involved originally sought $280 million in damages from Apple's alleged price-fixing scheme, but later tripled the amount to $840 million, according to reports.
Attorneys from both sides agreed to the terms of the settlement. The plaintiffs (class action attorneys and AGs) told the judge it was a fair deal and it was unlikely that an appeals court would reverse her decision. Apple has yet to make a statement to members of the press regarding the case.
Publishers included in the case against Apple include Hachette Book Group, News, HarperCollins Publishers, Penguin Group and Simon & Schuster. The case has been going on since at least 2012.
