Apple found per se liable in a hub-and-spoke conspiracy with e-book publishers

Last week, Apple was found by a court in the Southern District of New York to have engaged in a per se illegal horizontal price-fixing conspiracy with five of the six top national book publishers to raise the price of e-books.

The court found that Apple effectively engaged in a ‘hub-and-spoke conspiracy’, i.e., Apple (acting as the hub) effectively facilitated and encouraged a horizontal agreement among the publishers (the spokes) to fix prices through a series of vertical agreements (containing MFN clauses) between Apple and each of the publishers. 

Although the court found Apple liable under a per se standard, the court indicated that it would have also found Apple liable under a rule of reason standard and rejected Apple’s assertion that its actions had the procompetitive effect of introducing competition (through Apple’s entry) in the e-books market then allegedly dominated by Amazon…

If you are registered and logged in to the site, click on the link below to read the rest of the Allen & Overy briefing. If not, please register or sign in with your details below.

Briefings from Allen & Overy

  • ITC reaffirms its power to bar digital file transfers

    The ITC has reaffirmed its power to ban electronic transmissions from the US where those transmissions infringe an intellectual property right or are otherwise based on an unfair trade practice.

  • Changes to French takeover rules

    A new French law, the ‘Law to recapture the real economy’ (‘Loi visant à reconquérir l’économie réelle’ or ‘Loi Florange’), was made on 1 April 2014.

View more briefings from Allen & Overy

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

One Bishops Square
London
E1 6AD
UK
http://www.allenovery.com

Turnover (£m): 1,189.00
No. of Lawyers: 2,304
No. of Lawyers (Asia Pacific): 357
Offices (Asia Pacific): 10

Jobs