[kennyc]

Apple ordered to change ‘most favored’ e-book contracts

By Cecilia Kang, Updated: Friday, September 6, 9:19 AM E-mail the writer
A federal judge on Friday ordered Apple to alter its contracts with e-books publishers to ensure price competition, in a closely watched decision that could ripple across Internet commerce for videos, music and other media.

U.S. District Court Judge Denise Cote issued a permanent injunction against Apple, forcing the company to alter contracts that contain “most favored nation” clauses, or preferred treatment that give the iPad maker the ability to control prices offered to competitors.

The judge barred Apple for five years from entering any new agreements with such favorable terms that would prevent retail ebooks prices from dropping. She also ordered an outside auditor to monitor the company’s compliance with her order for two years.

In July, Cote, of the U.S. District Court of the Southern District of New York, ruled that Apple conspired with publishers Hachette Book Group, HarperCollins, Macmillan, Penguin and Simon & Schuster to lift prices of e-books.
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http://www.washingtonpost.com/busine...f2c_story.html

Other Links:
http://www.pcworld.com/article/20482...ook-deals.html

Cnet:

Judge orders Apple e-books monitor to prevent 'further misconduct'
An external monitor will be in place for two years to ensure that Apple complies with the court's orders. But the judge excluded other remedies the government had suggested.
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http://news.cnet.com/8301-13579_3-57...er-misconduct/