For Immediate Release
Media Contact: Bob Cooper
Date: May 23, 2013
Idaho Consumers to Receive $485,000 from E–book Antitrust Settlement
(Boise) - Idahoans are expected to receive up to $485,000 in additional restitution as a result of two settlement agreements, Attorney General Lawrence Wasden announced. Idaho, along with 32 other states and territories, entered settlement agreements with Penguin Group (USA) Inc. ("Penguin") and Holtzbrinck Publishers LLC d/b/a Macmillan ("Macmillan") to resolve allegations that Penguin and Macmillan were part of a conspiracy with other major publishers and Apple Inc. to manipulate electronic book ("e–book") prices in violation of state antitrust law.
"These settlements have a dual effect of gaining restitution for Idaho consumers forced to pay higher prices for e–books and restoring competition in the e–book market by promoting competition," Attorney General Wasden said.
The settlement agreements must be approved by the U.S. District Court. When approved, the settlement agreements will grant e–book outlets greater freedom to reduce the prices of their e–book titles. Penguin and Macmillan have also agreed to alter their business practices to restore competition in the e–book market. The settlements will provide $75 million from Penguin and $20 million from Macmillan for restitution to eligible e–book purchasers nationwide.
Idaho previously settled with publishers Hachette Book Group Inc., HarperCollins Publishers LLC, and Simon & Schuster Inc., alleging the same conduct. In total, Idaho consumers will be entitled to approximately $832,000 in restitution as a result of the settlements with the five e–book publishers. The trial with Apple will begin in June 2013.
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