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wigby

macrumors 68030
Jun 7, 2007
2,751
2,716
this really comes down to a "cultural" difference between the private tech sector and government. all companies collude. they do so in order to position themselves best because all of them want to create a monopoly for themselves. it's just how it works when your only driving force is profit and growth. you have nowhere else to go in a capitalist economy. now the doj has no clue about profit growth so everything to them looks like collusion and potential monopoly.
 

ck2875

macrumors 65816
Mar 25, 2009
1,029
2,923
Brighton
I thought that was called "dumping" and is illegal. It's only used as a means to crush competition by making it impossible for any other business to compete, while Amazon can afford to take the loss for a while until the other guys go out of business.

At Wal-Mart, it's referred to as "Rolling Back Prices." ;)

I pretty much view both of those corporation's strategies as one and the same— kill the little man.
 

nagromme

macrumors G5
May 2, 2002
12,546
1,196
I think I understand....

1. Amazon has a near monopoly (monopsony?)

2. Amazon can do whatever they want (it was Amazon who requested the DoJ pursue this matter in the first place)

3. Many companies are affected (if not outright killed off) by Amazon's predatory practices

4. If those companies make a peep, they are "colluding" against poor Amazon!

5. How could all the publishers respond at the same time? It's almost as though they're all responding to the same thing that just happened. Nah... collusion.
 

TheZeitgeist

macrumors newbie
Feb 18, 2013
9
0
This is what one gets not being corrupt.

DC is a shakedown operation, so if you're not plugged in you get mugged.

This is why Bozo buying the Washington Post is such a good deal. Everyone in DC-NY corridor wonders how the digitized Wal-Mart clown will make money on a dying antique newspaper, but they don't get it - he bought influence, he bought his way into the social circle of the DOJ, Congresscritters, etc. No matter the clowns in power, Bozo has access to them with not the business of the Post but the social institution - the lunches and cocktail parties and all the rest. That's where power is in DC.

Apple is a good example of what happens when you don't grease the DC skids. They make all this money, are an American icon more effective than any propaganda, employ thousands, and make popular stuff. But they don't play the game...so you see Tim Cook be whipping boy in Congress, this DOJ shakedown, etc. Meanwhile Amazon runs vast sweatshop warehouses with a predatory money-losing business model - and gets away with it.

But they play the game better than Apple does, indeed with the WaPo purchase obviously play it better than any other digital business.
 

scbn

macrumors 6502
Jul 25, 2010
272
22
DOJ already settled with the publishers. They should not punish them again by basically eliminating Apple as an ebooks competitor.
 

nagromme

macrumors G5
May 2, 2002
12,546
1,196
It's very short-sighted to say that Amazon dumping ebooks for cheap is "good" for people who read books.
 

pirg

macrumors 6502a
Apr 18, 2013
618
0
Wth...had to read the headline twice. This is just ridiculous
 

UnfetteredMind

macrumors 6502
Jun 6, 2012
451
77
The publishers have all already pleaded guilty and agreed to pay fines. Apple was the only one who refused to settle and take it to court.

Actually, they did neither (pled guilty or paid fines).

More info from the DoJ and other sources:
http://news.cnet.com/8301-1023_3-57568377-93/macmillan-reaches-e-book-pricing-settlement-with-doj/
http://www.justice.gov/opa/pr/2012/April/12-at-457.html
http://www.justice.gov/opa/pr/2013/February/13-at-171.html

Note in the CNET article the very important statement from Macmillan's John Sargent:

February 8, 2013
Dear Authors, Illustrators and Agents,
Today we agreed to settle our case with the DOJ. We settled because the potential penalties became too high to risk even the possibility of an unfavorable outcome.
There are two reasons we did not settle earlier. First, the settlement called for a level of e-book discounting we believed would be harmful to the industry. We felt that if only three of the big six publishers were required to discount and we stood firm, those problems might be avoided. But when Random House agreed to be bound by the Penguin settlement, it became clear that all five of the other big six publishers would be allowing the whole agent's commission to be used as discount, and Macmillan's stand-alone selling at full agency price would have no impact on the overall marketplace. And in addition, your books and our business would have a pricing disadvantage for two years.
The second reason was simpler. I had an old fashioned belief that you should not settle if you have done no wrong. As it turns out, that is indeed old fashioned. Our company is not large enough to risk a worst case judgment. In this action the government accused five publishers and Apple of conspiring to raise prices. As each publisher settled, the remaining defendants became responsible not only for their own treble damages, but also possibly for the treble damages of the settling publishers (minus what they settled for). A few weeks ago I got an estimate of the maximum possible damage figure. I cannot share the breathtaking amount with you, but it was much more than the entire equity of our company.
I like to believe that we would win at trial. But outcomes are hard to predict with certainty, particularly in a civil case with a low burden of proof. And so we agreed to settle with no admission of guilt. As with the other settling publishers, retailers will now be able to discount Macmillan e-books for a limited time. This change will take effect quickly.
Thank you for all the support you have shown for Macmillan, and me, over this last year. And also thanks to the many booksellers and others who voiced their opinions. I'm disappointed it ended this way. But this round will shortly be over, and it is time for us to move on to the next.
All best,
John

So if they went to court and lost, in his view, the company could be forced out of business. The risk was too high and they settled, even though they did not feel they were guilty!

The DoJ's proposal for dealing with Apple now oversteps the agreements with the publishers who settled, they complain about it (as they are being punished beyond their prior settlements) and then the DoJ uses their complaints as more proof that they are conspiring??? LOL, seriously? It should have been expected.
 

clibinarius

macrumors 6502a
Aug 26, 2010
671
70
NY
Don't you just LOVE the progressive perversion of the commerce clause being used as a tool to tell business what they can and cannot do?

You make it impossible for a corporation to conduct business in the United States and then bitch and moan when they offshore jobs and keep profits overseas.

Why would a corporation reward a population and the government it elects when that population/government does everything within its legal (and made up) power to prevent that corporation from doing business?

Fight the good fight Apple. Keep that ~$100 billion overseas and invest in companies in other countries!!!

The corporation should reward the population because we open our markets to them. If you don't have loyalty to the market, then I think the market has the right to tell the corporation they're parasites in such a circumstance.

The same way a corporation should have the right to tell the market that the market is a parasite, if that is so the case.

It works both ways, or should anyway, you know? If the corporation says go scratch, why can't the people?

If Apple takes US money and off-shores it, then the US should, in my view, tell Apple, hey, you're not serving our interests. If the money is legitimately gained overseas, then I don't think it should be touched by the US, unless Apple wills it.

I would say that a company that keeps $100,000,000,000 overseas isn't American and should simply not be treated like it is, unless that's a minority of its cash horde. Why, Samsung is more of an American company than Apple nowadays in terms of production and manufacturing. Yet Apple seems to get the preferential treatment from our government on patent cases...
 

Rocketman

macrumors 603
Actually, they did neither (pled guilty or paid fines).

More info from the DoJ and other sources:
http://news.cnet.com/8301-1023_3-57568377-93/macmillan-reaches-e-book-pricing-settlement-with-doj/
http://www.justice.gov/opa/pr/2012/April/12-at-457.html
http://www.justice.gov/opa/pr/2013/February/13-at-171.html

Note in the CNET article the very important statement from Macmillan's John Sargent:

Sargent said:
The second reason was simpler. I had an old fashioned belief that you should not settle if you have done no wrong. As it turns out, that is indeed old fashioned. Our company is not large enough to risk a worst case judgment. In this action the government accused five publishers and Apple of conspiring to raise prices. As each publisher settled, the remaining defendants became responsible not only for their own treble damages, but also possibly for the treble damages of the settling publishers (minus what they settled for). A few weeks ago I got an estimate of the maximum possible damage figure. I cannot share the breathtaking amount with you, but it was much more than the entire equity of our company.

This is extortion. Literally.

http://criminal.findlaw.com/criminal-charges/extortion.html

findlaw said:
Extortion is the crime of obtaining money or property by threat to a victim's property or loved ones, intimidation, or false claim of a right.

Most states define extortion as the gaining of property or money by almost any kind of force, or threat of 1) violence, 2) property damage, 3) harm to reputation, or 4) unfavorable government action. While usually viewed as a form of theft/larceny, extortion differs from robbery in that the threat in question does not pose an imminent physical danger to the victim.

Extortion is a felony in all states.

State DA's? Grand juries?

This case would get a bunch of them re-elected. :D
 

freedevil

macrumors 6502a
Mar 7, 2007
816
2
I am happy that Apple will be forced to open up. I prefer amazon and have many kindle books. If I could buy them from the kindle app on IOS, I would be happy happy.
 

69650

Suspended
Mar 23, 2006
3,367
1,876
England
Actually, they did neither (pled guilty or paid fines).

More info from the DoJ and other sources:
http://news.cnet.com/8301-1023_3-57568377-93/macmillan-reaches-e-book-pricing-settlement-with-doj/
http://www.justice.gov/opa/pr/2012/April/12-at-457.html
http://www.justice.gov/opa/pr/2013/February/13-at-171.html

Note in the CNET article the very important statement from Macmillan's John Sargent:

So if they went to court and lost, in his view, the company could be forced out of business. The risk was too high and they settled, even though they did not feel they were guilty!

The DoJ's proposal for dealing with Apple now oversteps the agreements with the publishers who settled, they complain about it (as they are being punished beyond their prior settlements) and then the DoJ uses their complaints as more proof that they are conspiring??? LOL, seriously? It should have been expected.

My mistake, the publishers all settled out of court and agreed to change their business models in order to avoid going to court, being found guilty and given punitive fines. Not sure what the difference is. They're still guilty of price fixing whether they like to admit it or not.

Apple didn't settle so they will go to court, lose and end up with a big fine.

----------

For anyone confused by this case I thought this was an interesting article:

http://scholarlykitchen.sspnet.org/2013/07/11/a-disastrous-week-for-publishers-authors-and-readers/
 

nuckinfutz

macrumors 603
Jul 3, 2002
5,539
399
Middle Earth
The problem here is that Apple did illegally collude with the publishers to usurp Amazon's lead in eBooks.

Now that the DoJ has won the case the taint of collusion is on the Defendants which means the attorney is smart to point out similar behavior whether it's right or not.

I knew Apple was going to lose this case. They delivered the proverbial "smoking gun" with some of those emails from Jobs.

The "Loss Leader" approach to selling has been time tested and is not predatory. Apple and the publishers colluded to raise pricing and force Amazon to employ the same agency model. That is antithetical to what consumers want and voids ethical behavior.

This is one of those situations where good/bad lines are blurred but for the sake of consumer protection the right decision was made by the DoJ.
 

LordVic

Cancelled
Sep 7, 2011
5,938
12,458
So the publishers collude, with or without Apple and yet Apple is the one who has to be punished. What a joke.

The publishers were punished as well just not directly from court order due to guilt.

Many settled multimillion dollar fines and some even plea bargained to stand witness against apple to avoid punishment


But the DoJ does have a valid point. These 5 publishers were all basically found to be colluding. Their next action was to team up and collude to tell the DoJ to allow them to return to collusion.

thats not smart. right or wrong, it's just not smart
 

UnfetteredMind

macrumors 6502
Jun 6, 2012
451
77
The publishers were punished as well just not directly from court order due to guilt.

Many settled multimillion dollar fines and some even plea bargained to stand witness against apple to avoid punishment.

I have seen no such information of these settlements, do you have info? Nothing I've found indicated anything of the sort, including the info on the DoJ's site itself.
 

gnasher729

Suspended
Nov 25, 2005
17,980
5,565
So here's what's happening:

I tell everyone that you are argumentative.
You say "I'm not".
I say "See, that proves it. You are arguing already".
 

Tigger11

macrumors 6502a
Jul 2, 2009
536
394
Rocket City, USA
I am happy that Apple will be forced to open up. I prefer amazon and have many kindle books. If I could buy them from the kindle app on IOS, I would be happy happy.

You can't use Safari to buy the books because of a fear of what exactly?

And I hate to point this out, but Apple is much more likely to the Kindle app off of IOS then let them add buy in app. That is banned from basically every app, not just book reading ones, and they aren't likely to change a major rule of the app store, for two apps (Kindle & Nook), nor should they.

-Tig
 

ivan2002

macrumors regular
Aug 8, 2010
103
2
Don't you just LOVE the progressive perversion of the commerce clause being used as a tool to tell business what they can and cannot do?

You make it impossible for a corporation to conduct business in the United States and then bitch and moan when they offshore jobs and keep profits overseas.

Why would a corporation reward a population and the government it elects when that population/government does everything within its legal (and made up) power to prevent that corporation from doing business?

Fight the good fight Apple. Keep that ~$100 billion overseas and invest in companies in other countries!!!

Yeah, no wonder Apple is moving more and more of it's business to a free country like China!
 

LordVic

Cancelled
Sep 7, 2011
5,938
12,458
Actually, they did neither (pled guilty or paid fines).

More info from the DoJ and other sources:
http://news.cnet.com/8301-1023_3-57568377-93/macmillan-reaches-e-book-pricing-settlement-with-doj/
http://www.justice.gov/opa/pr/2012/April/12-at-457.html
http://www.justice.gov/opa/pr/2013/February/13-at-171.html

Note in the CNET article the very important statement from Macmillan's John Sargent:



So if they went to court and lost, in his view, the company could be forced out of business. The risk was too high and they settled, even though they did not feel they were guilty!

The DoJ's proposal for dealing with Apple now oversteps the agreements with the publishers who settled, they complain about it (as they are being punished beyond their prior settlements) and then the DoJ uses their complaints as more proof that they are conspiring??? LOL, seriously? It should have been expected.

I have seen no such information of these settlements, do you have info? Nothing I've found indicated anything of the sort, including the info on the DoJ's site itself.

Ssee quoted individual before mine.
 

Berserker-UK

macrumors regular
Jan 4, 2012
102
55
Berkshire, UK
Apple is a good example of what happens when you don't grease the DC skids.

What complete nonsense! Do you really think the Obama administration would veto the USITC over their proposed Apple ban out of pure kindness? Of course Apple have influence on Capitol Hill.

But I suppose this is MacRumors - where Apple are gods and everyone else is evil!
 
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