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U.S. Reaches Settlement With Publishers over Alleged e-Book Scheme

BY Rob Stigile, Mike Scarcella
April 27, 2012

As the U.S. Department of Justice (DOJ) prepares to battle Apple over alleged price-fixing in the electronic books market, top department officials said they are hopeful consumers will benefit from the settlement reached with three publishers.

Sharis Pozen, the acting head of the DOJ Antitrust Division, said the government believes the settlement with three publishers ' HarperCollins Publishers, Simon & Schuster, and Hachette Book Group ' will restore price competition and lead to lower prices for e-books.

In a complaint filed in U.S. District Court for the Southern District of New York prior to the settlement, prosecutors alleged that Apple colluded with Hachette Book Group, HarperCollins Publishers, Macmillan, The Penguin Group, and Simon & Schuster to raise the price of e-books in response to Amazon's practice of offering $9.99 electronic copies of new releases and bestsellers on its Kindle platform.

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