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Apple, publishers sued for alleged price fixing: report
by Staff Writers
San Francisco (AFP) Aug 13, 2011

Five book publishers and computer manufacturer Apple have been sued for allegedly colluding to drive up the price of e-books, lawyers for the plaintiffs said.

The class-action suit, filed in the US District Court here, claims HarperCollins, Hachette, Macmillan, Penguin and Simon & Schuster had worked with Apple to break Internet retailer Amazon.coms discount pricing strategy and help Apples iPad compete with the Kindle marketed by Amazon.

According to the suit, the publishers believed that Amazons popular Kindle e-reader device and the companys discounted pricing for e-books would increase the adoption of e-books, and feared Amazons discounted pricing structure would permanently set consumer expectations for lower prices, even for other e-reader devices.

"Fortunately for the publishers, they had a co-conspirator as terrified as they were over Amazons popularity and pricing structure, and that was Apple," said Steve Berman, an attorney representing consumers.

"We intend to prove that Apple needed a way to neutralize Amazons Kindle before its popularity could challenge the upcoming introduction of the iPad, a device Apple intended to compete as an e-reader," Berman added.

The complaint claims that the five publishing houses forced Amazon to abandon its discount pricing and adhere to a new agency model, in which publishers set prices and extinguished competition so that retailers such as Amazon could no longer offer lower prices for e-books.

If Amazon attempted to sell e-books below the publisher-set levels, the publishers would simply deny Amazon access to the title, the complaint claims.

The defendant publishers control 85 percent of the most popular fiction and non-fiction titles.

According to the lawsuit, Apple and publishers were concerned that Amazons $9.99 uniform pricing for bestsellers would create market pressures for other e-booksellers -- including Apple -- to do the same, cutting into profitability.

The named plaintiffs included Anthony Petru, a resident of Oakland, California, and Marcus Mathis, a resident of Natchez, Mississippi.

The law firm Hagens Berman, which posted the complaint on its website, announced the filing of the suit on August 9.




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France's Orange adds to iPhone 5 release hype
Paris (AFP) Aug 13, 2011 - French mobile network operator Orange has broken the secrecy surrounding Apple's new iPhone 5 through a job advert, despite the US firm's ban on its partners referring to the product before its expected Sptember release.

Orange which is owned by France Telecom is Apple's official partner in France.

The advertised opening was for an engineer, a university graduate or with a business degree, who would be expected to work with the fifth-generation handset.

The offer has been available online on the France Telecom Orange human resources website since Thursday and says "one of the main issues is the definition, as precisely as possible, of what impact a handset like the iPhone 5 will have on clients' Internet use".

Orange also talks vaguely about a modification of the handset's use by "iPhone 5" users.

The fifth-generation iPhone whose official name has not yet been announced is widely expected to be launched in September and available in shops shortly after.

The California company has not commented on the secrecy breach and France Telecom Orange had no comment either when contacted by AFP early Saturday.

Apple dethroned software giant Microsoft in May of last year to become the largest US technology company in terms of market cap -- the number of shares multiplied by the stock price.

Apple stock has risen steadily over the past few years as chief executive Steve Jobs piloted the release of a string of hit products starting with the iPod in 2001, followed by the iPhone in 2007 and the iPad last year.

Apple's ascension to most valuable company was seen as remarkable given that it was floundering and seemingly heading into oblivion before Jobs returned to the helm about 15 years ago.





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TECH SPACE
HP cuts tablet price in bid to challenge iPad
San Francisco (AFP) Aug 11, 2011
US technology giant Hewlett-Packard (HP) on Thursday cut the price of its freshly-launched TouchPad tablet computers in a bid to gain traction in a market dominated by Apple's iPad. TouchPads with 16 gigabytes of memory were offered on the HP website for $400 and models with 32 gigabytes were available for $500 in what amounted to lopping $100 off the original prices. "HP continually eva ... read more


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