Judge Dishes Out Apple’s Penalties In Ebook Case
Judge Denise Cote revealed in court today what penalties Apple will be facing for being found guilty in its big ebook trial. The penalties focus mainly on ensuring that Apple doesn’t commit anymore collusion with publishers.
Apple must now stagger its companies’ contract negotiations with book publishers by at least six months time, ensuring that it doesn’t sign multiple contracts all at once like it had done in the past. Apple is also no longer allowed to enter MFN (Most Favored Nation) agreements with publishers of any kind for the next five years. These contracts ensured that no other seller would be able to price their books lower than Apple.
Apple had hoped that the court still allow it to enter things like MFNs, only with more restrictions. Unfortunately for Apple, Judge Cote ruled against this completely. Apple must also hire a third-party to monitor and ensure it continues to comply with antitrust agreements.
Apple, however, is appealing the original guilty verdict and may not ever see any of these penalties.