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DOJ Motion of Facts and Law

DOJ Motion of Facts and Law

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Published by: jeff_roberts881 on May 15, 2013
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07/04/2013

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UNITED STATES DISTRICT COURTFOR THE SOUTHERN DISTRICT OF NEW YORK 
 __________________________________________ )UNITED STATES OF AMERICA, ))Plaintiff, ))v. ) Civil Action No. 12-cv-2826 (DLC))APPLE, INC., et al., ))Defendants. ) __________________________________________) __________________________________________ )THE STATE OF TEXAS; )THE STATE OF CONNECTICUT; et al ))Plaintiffs, ))v. ) Civil Action No. 12-cv-03394 (DLC))PENGUIN GROUP (USA) INC. et al, ))Defendants. ) __________________________________________)
PLAINTIFFS’ PROPOSED FINDINGS OF FACTAND CONCLUSIONS OF LAW
Case 1:12-cv-02826-DLC Document 233 Filed 05/14/13 Page 1 of 1
 
UNITED STATES DISTRICT COURTFOR THE SOUTHERN DISTRICT OF NEW YORK 
 __________________________________________ )UNITED STATES OF AMERICA, ))Plaintiff, ))v. ) Civil Action No. 12-CV-2826 (DLC))APPLE, INC., et al., ))Defendants. ) __________________________________________) __________________________________________ )THE STATE OF TEXAS; )THE STATE OF CONNECTICUT; et al., ))Plaintiffs, ))v. ) Civil Action No. 12-cv-03394 (DLC))PENGUIN GROUP (USA) INC. et al., ))Defendants. ) __________________________________________)
PLAINTIFFS’ PROPOSED FINDINGS OF FACT
Case 1:12-cv-02826-DLC Document 233-1 Filed 05/14/13 Page 1 of 103
 
 
ii
TABLE OF CONTENTS
I.
INTRODUCTION .............................................................................................................. 1
 II.
DEFENDANTS .................................................................................................................. 4
 A.
Litigating Defendants........................................................................................... 4
 B.
Settled Defendants ............................................................................................... 4
 III.
BACKGROUND ................................................................................................................ 5
 A.
The Publishing Industry ....................................................................................... 5
 B.
Amazon Ushered in the Modern E-Book Era in 2007 with the Kindle Deviceand Low E-Book Prices ....................................................................................... 5
 C.
Apple Never Wanted to Price Compete Against Amazon ................................... 7
 D.
Publisher Defendants Hated Amazon’s $9.99 Pricing ......................................... 8
 
E. E-Books Would Have Been Available on the iPad No Matter What………….10IV.
PUBLISHER DEFENDANTS SOUGHT TO RAISE RETAIL E-BOOK PRICES........ 11
 A.
The Publishing Industry Is Well-Suited to Coordinated Pricing and Interaction........................................................................................................................... 11
 B.
Publisher Defendants Shared Competitively Sensitive Information with EachOther .................................................................................................................. 12
 C.
Early Plans to Force Amazon to Raise Its Prices Were Abandoned for Lack of Industry Support ................................................................................................ 13
 D.
Groups of Publisher Defendants Discussed Raising Retail E-Book Prices in theContext of Potential Joint Venture Conversations ............................................. 14
 E.
Publisher Defendants Used Coordinated Windowing as a Tool to Try to ForceAmazon to Raise Its Retail E-Book Prices ........................................................ 16
 1.
Single-Title Windowing .................................................................... 16
 2.
Systematic Windowing ..................................................................... 17
 
Case 1:12-cv-02826-DLC Document 233-1 Filed 05/14/13 Page 2 of 103

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