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UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF NEW YORK 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -IN RE: ELECTRONIC BOOKSANTITRUST LITIGATIONThis Document Relates to:ALL ACTIONS- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x::::::::::x11-md-02293 (DLC)
APPLE INC.’S MEMORANDUM OF LAW IN SUPPORT OF MOTIONTO DISMISS THE CONSOLIDATED AMENDED CLASS ACTION COM-PLAINT
G
IBSON
,
 
D
UNN
&
 
C
RUTCHER 
LLP333 South Grand AvenueLos Angeles, CA 90071-3197T: 213.229.7000; F: 213.229.7520
 Attorneys for Defendant Apple Inc.
Case 1:11-md-02293-DLC Document 74 Filed 03/02/12 Page 1 of 31
 
 i
TABLE OF CONTENTSPage
INTRODUCTION .......................................................................................................................... 1
 
SUMMARY OF ALLEGATIONS ................................................................................................. 3
 
I.
 
The Background Surrounding Apple’s Entry into the eBooks Market.................................. 3
 
II.
 
Apple Enters the eBook Market and Bilaterally Negotiates Vertical AgencyAgreements with the Publisher Defendants ........................................................................... 4
 
III.
 
Plaintiffs’ Allegations Against Apple .................................................................................... 5
 
LEGAL STANDARD ..................................................................................................................... 6
 
ARGUMENT .................................................................................................................................. 6
 
I.
 
Plaintiffs’ Allegations Simply Lump All Defendants Together 
 En Masse
and FailPlausibly to Allege Apple’s
 
Involvement as the “Hub” of a Conspiracy .............................. 6
 
A.
 
Plaintiffs Fail to Plead Apple’s Individual Participation in Any AllegedConspiracy .............................................................................................................. 6
 
B.
 
Apple’s Alleged Conduct Is Consistent with Its Lawful IndependentBusiness Interests and Does Not Plausibly Suggest That Apple Acted asthe Hub of a Horizontal Conspiracy ....................................................................... 8
 
1.
 
Apple’s Lawful Agency Agreements Allowed It to Enter aConcentrated eBook Market Dominated by Amazon WithoutRequiring It to Incur Losses ........................................................................ 8
 
2.
 
Plaintiffs’ “Hub” Allegations Are Implausible and Apple’sSimultaneously Negotiated Similar Agreements Do Not Suggest aConspiracy ................................................................................................ 11
 
3.
 
Plaintiffs’ Pricing Allegations Do Not Plausibly Support a Claimof a Horizontal Conspiracy ....................................................................... 14
 
4.
 
Plaintiffs Offer No Plausible Allegations of Apple’s Involvementin a Conspiracy to Force Amazon to Adopt the Agency Model ............... 17
 
C.
 
Any Attempt by Plaintiffs to Analogize This Case to
Starr v. Sony BMG Music Entertainment 
Must Fail ............................................................................ 18
 
II.
 
Plaintiffs Have Failed to Plead an Unlawful Restraint of Trade by Apple EvenAssuming
 Arguendo
the Existence of a Conspiracy ............................................................ 20
 
A.
 
Apple’s Alleged Involvement in Horizontal Agreements Would NotTrigger Per Se Treatment ...................................................................................... 20
 
Case 1:11-md-02293-DLC Document 74 Filed 03/02/12 Page 2 of 31
 
 iiB.
 
Plaintiffs Have Not Plausibly Alleged That Apple’s Vertical AgreementsViolate the Rule of Reason ................................................................................... 21
 
III.
 
Plaintiffs’ State Antitrust and Unjust Enrichment Claims Also Fail ................................... 24
 
CONCLUSION ............................................................................................................................. 25
 
Case 1:11-md-02293-DLC Document 74 Filed 03/02/12 Page 3 of 31
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