
(credit: shiftstigma)
A US appeals court on Wednesday upheld the $450 million settlement that Apple agreed to (PDF) in an antitrust lawsuit over e-book price-fixing. After a district court found Apple liable for antitrust violations, the company settled for $450 million, but one consumer challenged that settlement figure, saying it was decided prematurely and was too low to represent a fair deal for e-book buyers.
Back in 2012, the Department of Justice followed a class-action lawsuit accusing Apple and five publishers (Penguin, HarperCollins, Hachette, Simon & Schuster, and Macmillan) of conspiring to offer e-books at price points between $12.99 and $14.99—well above Amazon’s $9.99 e-books. The publishers settled but Apple held out, and in June 2014 a Manhattan district court judge ruled that Apple was indeed violating antitrust law. Apple appealed the ruling, but it worked out a settlement deal later that year—if the company went through the appeals process and lost, it would pay $400 million to consumers in cash and e-book credits and $50 million to the plaintiff’s lawyers. But if Apple won a retrial, it would only pay $50 million to consumers and $20 million to lawyers. And if the decision were overturned on appeal, Apple would pay nothing.
Objector-Appellant John Bradley, a consumer who purchased e-books, appealed the District Court’s decision to approve the $450 million settlement that Apple agreed to. Bradley challenged "the fairness, reasonableness, and adequacy of the Settlement,” arguing that Apple should pay more for its alleged role in the scheme.






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