The US Department of Justice is out for blood from the big Apple. USDOJ is suing Apple, along with major publishers, for collusion of e-book pricing. The publishers included in the law suit include Penguin, HarperCollins, Simon and Schuster, and Hachette. The problem is that the model employed gives the power of price setting to the publishers, depriving the sellers of this right.
While three of them have settled, including Simon and Schuster, Hachette, and HarperCollins, the other three, including Apple, face charges of conspiring to rob sellers of their freedom in price setting. Attorney General Eric Holder claimed that the public was ripped off at the tune of millions of dollars on the most popular e-books.
The accusation is that the publisher defendants teamed up with Apple to put a stop to retailer competitive pricing. Apple officially refused to comment. Although Hachette claims there were no anti-trust laws violated, they joined the settlement. Granted, they claim they were reluctant to settle, but the fact remains that they did.