The latest news is that Apple has offered to settle
its e-book price fixing charge in Europe, but vows to fight a a
similar battle in America because the charges against it by the
Department of Justice are "simply not true". Forbes.com reports, Apple
Offers E-Book Settlement: But Only in Europe, "The technology
company was initially tight-lipped about the US case but last week
broke its silence to declare itself innocent and paint itself as a
hero for breaking Amazon’s “monopolistic grip”. It said the iPad’s
bookstore “fostered innovation and competition ... However, it has
taken an altogether different approach in Brussels. Joaquín
Almunia, the European Union competition commissioner, said he has
received settlement offers from Apple and all the publishers other
than Penguin."One speculation (by contributor, Tim Worstall) is, "As to why the settlement in Europe I have a sneaking suspicion it’s because of the size of the potential fines," implying that Apple might be trying to stave out a potential hefty fine. Maybe. But I am inclined to think that Apple is gambling on Europe being more sympathetic towards it because it genuinely thinks it is promoting competition, and saving the world from the likes of Amazon.
It is in Europe's DNA to side with the underdog, to protect workers and small businesses (known, derisively, as socialism in America), especially in an industry it gets very emotional about and regards as a cultural heritage. When Amazon implemented free shipping in France, it was found to be in violation of a law that disallowed unfair discounting of books. Amazon already has a reputation for being the bad guy in Europe. Apple might genuinely think that it would get a fairer deal across the pond.
In the US, Amazon's practices are seen (by some) as morally wrong but not illegal. Scorched earth business practices are legal in America; as long as consumers 'benefit', jobs can be bangalored, and small businesses shuttered. The stated goal of antitrust laws is "consumer protection", which critics say does everything but.
All that might be changing, though. Wendy Milling says in another story in Forbes.com, The DOJ's Mugging Of Apple Reminds Us That Antitrust Is Theft, "The absurdity of the Department of Justice’s latest antitrust charges against Apple has prompted a long overdue re-evaluation of the validity of antitrust doctrine." She adds, "If an e-book seller (Amazon) charges a price so low it takes a loss on its e-books to gain market share, no charges are filed. If publishers (HarperCollins, Penguin, etc.) agree to an agency model that decreases their total revenue on e-books, charges are filed."
Will Apple be instrumental in changing the world yet again?
