1
 
13
3741
cv
 
(L)
 
United
 
States
 
v.
 
 Apple,
 
Inc.
 
UNITED
 
STATES
 
COURT
 
OF
 
APPEALS
 
1
 
FOR
 
THE
 
SECOND
 
CIRCUIT
 
2
 
3
 
August
 
Term
 
2014
 
4
 
5
 
(Argued:
 
December
 
15,
 
2014
 
Decided:
 
 June
 
30,
 
2015)
 
6
 
7
 
Nos.
 
13
3741
cv,
 
13
3748
cv,
 
13
3783
cv,
 
13
3857
cv,
 
13
3864
cv,
 
13
3867
cv
 
8
 
9
 
––––––––––––––––––––––––––––––––––––
 
10
 
11
 
U
NITED
 
S
TATES
 
OF
 
A
MERICA
 ,
 
S
TATE
 
OF
 
T
EXAS
 ,
 
S
TATE
 
OF
 
C
ONNECTICUT
 ,
 
S
TATE
 
OF
 
12
 
A
LABAMA
 ,
 
S
TATE
 
OF
 
A
LASKA
 ,
 
S
TATE
 
OF
 
A
RIZONA
 ,
 
S
TATE
 
OF
 
A
RKANSAS
 ,
 
S
TATE
 
OF
 
13
 
C
OLORADO
 ,
 
S
TATE
 
OF
 
D
ELAWARE
 ,
 
S
TATE
 
OF
 
I
DAHO
 ,
 
S
TATE
 
OF
 
I
LLINOIS
 ,
 
S
TATE
 
OF
 
14
 
I
NDIANA
 ,
 
S
TATE
 
OF
 
I
OWA
 ,
 
S
TATE
 
OF
 
K
ANSAS
 ,
 
S
TATE
 
OF
 
L
OUISIANA
 ,
 
S
TATE
 
OF
 
15
 
M
ARYLAND
 ,
 
C
OMMONWEALTH
 
OF
 
M
ASSACHUSETTS
 ,
 
S
TATE
 
OF
 
M
ICHIGAN
 ,
 
S
TATE
 
OF
 
16
 
M
ISSOURI
 ,
 
S
TATE
 
OF
 
N
EBRASKA
 ,
 
S
TATE
 
OF
 
N
EW
 
M
EXICO
 ,
 
S
TATE
 
OF
 
N
EW
 
Y
ORK
 ,
 
S
TATE
 
17
 
OF
 
N
ORTH
 
D
AKOTA
 ,
 
S
TATE
 
OF
 
O
HIO
 ,
 
C
OMMONWEALTH
 
OF
 
P
ENNSYLVANIA
 ,
 
S
TATE
 
OF
 
18
 
S
OUTH
 
D
AKOTA
 ,
 
S
TATE
 
OF
 
T
ENNESSEE
 ,
 
S
TATE
 
OF
 
U
TAH
 ,
 
S
TATE
 
OF
 
V
ERMONT
 ,
 
19
 
C
OMMONWEALTH
 
OF
 
V
IRGINIA
 ,
 
S
TATE
 
OF
 
W
EST
 
V
IRGINIA
 ,
 
S
TATE
 
OF
 
W
ISCONSIN
 ,
 
20
 
C
OMMONWEALTH
 
OF
 
P
UERTO
 
R
ICO
 ,
 
AND
 
D
ISTRICT
 
OF
 
C
OLUMBIA
 ,
 
21
 
22
 
Plaintiffs
 Appellees
 ,
 
23
 
24
 
v.
25
 
26
 
A
PPLE
 ,
 
I
NC
.,
 
S
IMON
 
&
 
S
CHUSTER
 ,
 
I
NC
.,
 
V
ERLAGSGRUPPE
 
G
EORG
 
V
ON
 
H
OLTZBRINCK
 
27
 
G
MB
H,
 
H
OLTZBRINCK
 
P
UBLISHERS
 ,
 
LLC,
 
DBA
 
M
ACMILLAN
 ,
 
S
IMON
 
&
 
S
CHUSTER
 
28
 
D
IGITAL
 
S
ALES
 ,
 
I
NC
.,
 
29
 
30
 
Defendants
 Appellants
 ,
 
31
 
32
 
 
2
 
H
ACHETTE
 
B
OOK
 
G
ROUP
 ,
 
I
NC
.,
 
H
ARPER
C
OLLINS
 
P
UBLISHERS
 
L.L.C.,
 
T
HE
 
P
ENGUIN
 
1
 
G
ROUP
 ,
 
A
 
D
IVISION
 
OF
 
P
EARSON
 
PLC,
 
P
ENGUIN
 
G
ROUP
 
(USA),
 
I
NC
.,
 
2
 
3
 
Defendants
.
 
4
 
5
 
––––––––––––––––––––––––––––––––––––
 
6
 
7
 
Before:
 
 J
ACOBS
 ,
 
L
IVINGSTON
 ,
 
and
 
L
OHIER
 ,
 
Circuit
 
 Judges
.
 
8
 
9
 
Defendants
 
Apple,
 
Macmillan,
 
and
 
Simon
 
&
 
Schuster
 
appeal
 
from
 
a
 
10
 
 judgment
 
of
 
the
 
United
 
States
 
District
 
Court
 
for
 
the
 
Southern
 
District
 
of
 
New
 
11
 
York
 
(Cote,
 
 J.
),
 
entered
 
on
 
September
 
5,
 
2013.
 
After
 
a
 
 bench
 
trial,
 
the
 
district
 
12
 
court
 
concluded
 
that
 
Apple
 
violated
 
§
 
1
 
of
 
the
 
Sherman
 
Antitrust
 
Act,
 
15
 
U.S.C.
 
§
 
13
 
1
 
et
 
seq.
 ,
 
 by
 
orchestrating
 
a
 
conspiracy
 
among
 
five
 
major
 
publishing
 
companies
 
to
 
14
 
raise
 
the
 
retail
 
prices
 
of
 
digital
 
 books,
 
known
 
as
 
“ebooks.”
 
The
 
court
 
then
 
issued
 
15
 
an
 
injunctive
 
order,
 
which,
 
inter
 
alia
 ,
 
prevents
 
Apple
 
from
 
signing
 
agreements
 
16
 
with
 
those
 
five
 
publishers
 
that
 
restrict
 
its
 
ability
 
to
 
set,
 
alter,
 
or
 
reduce
 
the
 
price
 
17
 
of
 
ebooks,
 
and
 
requires
 
Apple
 
to
 
apply
 
the
 
same
 
terms
 
and
 
conditions
 
to
 
ebook
 
18
 
applications
 
sold
 
on
 
its
 
devices
 
as
 
it
 
does
 
to
 
other
 
applications.
 
We
 
conclude
 
that
 
19
 
the
 
district
 
court
 
correctly
 
decided
 
that
 
Apple
 
orchestrated
 
a
 
conspiracy
 
among
 
20
 
the
 
publishers
 
to
 
raise
 
ebook
 
prices,
 
that
 
the
 
conspiracy
 
unreasonably
 
restrained
 
21
 
trade
 
in
 
violation
 
of
 
§
 
1
 
of
 
the
 
Sherman
 
Act,
 
and
 
that
 
the
 
injunction
 
is
 
properly
 
22
 
calibrated
 
to
 
protect
 
the
 
public
 
from
 
future
 
anticompetitive
 
harms.
 
In
 
addition,
 
23
 
we
 
reject
 
the
 
argument
 
that
 
the
 
portion
 
of
 
the
 
injunctive
 
order
 
preventing
 
Apple
 
24
 
from
 
agreeing
 
to
 
restrict
 
its
 
pricing
 
authority
 
modifies
 
Macmillan
 
and
 
Simon
 
&
 
25
 
Schuster’s
 
consent
 
decrees
 
or
 
should
 
 be
 
 judicially
 
estopped.
 
Accordingly,
 
the
 
26
 
 judgment
 
of
 
the
 
district
 
court
 
is
 
AFFIRMED
.
 
27
 
28
 
Raymond
 
 J.
 
Lohier
 
(
Circuit
 
 Judge
)
 
files
 
a
 
separate
 
concurring
 
opinion,
 
 joining
 
in
 
29
 
the
 
 judgment
 
and
 
in
 
the
 
majority
 
opinion
 
except
 
for
 
Part
 
II.B.2.
 
30
 
31
 
Dennis
 
 Jacobs
 
(
Circuit
 
 Judge
)
 
files
 
a
 
separate
 
dissenting
 
opinion.
 
32
 
33
 
F
OR
 
P
LAINTIFFS
A
PPELLEES
:
 
M
ALCOLM
 
L.
 
S
TEWART
 ,
 
Deputy
 
Solicitor
 
34
 
General,
 
U.S.
 
Department
 
of
 
 Justice,
 
35
 
Washington,
 
DC,
 
William
 
 J.
 
Baer,
 
Assistant
 
36
 
 
3
 
Attorney
 
General,
 
Mark
 
W.
 
Ryan,
 
Daniel
 
1
 
McCuaig,
 
Kristen
 
C.
 
Limarzi,
 
Robert
 
B.
 
2
 
Nicholson,
 
David
 
Seidman,
 
Finnuala
 
K.
 
3
 
Tessier,
 
Lawrence
 
B.
 
Buterman,
 
Attorneys,
 
4
 
U.S.
 
Department
 
of
 
 Justice
 
Antitrust
 
5
 
Division,
 
Washington,
 
DC,
 
 for
 
the
 
United
 
6
 
States
.
 
7
 
8
 
George
 
 Jepsen,
 
Attorney
 
General
 
of
 
9
 
Connecticut,
 
W.
 
 Joseph
 
Nielsen,
 
Assistant
 
10
 
Attorney
 
General,
 
Office
 
of
 
Attorney
 
11
 
General
 
of
 
Connecticut,
 
Hartford,
 
CT,
 
Greg
 
12
 
Abbott,
 
Attorney
 
General
 
of
 
Texas,
 
Daniel
 
13
 
T.
 
Hodge,
 
First
 
Assistant
 
Attorney
 
General
 
14
 
of
 
Texas,
 
 John
 
Scott,
 
Deputy
 
Attorney
 
15
 
General
 
of
 
Texas,
 
 Jonathan
 
F.
 
Mitchell,
 
16
 
Solicitor
 
General
 
of
 
Texas,
 
Andrew
 
17
 
Oldham,
 
Deputy
 
Solicitor
 
General
 
of
 
Texas,
 
18
 
 John
 
T.
 
Prud’homme,
 
Kim
 
van
 
Winkle,
 
Eric
 
19
 
Lipman,
 
Assistant
 
Attorneys
 
General,
 
20
 
Office
 
of
 
Attorney
 
General
 
of
 
Texas,
 
Austin,
 
21
 
TX,
 
 for
 
Plaintiff 
States
.
 
22
 
23
 
Eric
 
T.
 
Schneiderman,
 
Attorney
 
General
 
of
 
24
 
the
 
State
 
of
 
New
 
York,
 
Won
 
S.
 
Chin,
 
25
 
Assistant
 
Solicitor
 
General,
 
Office
 
of
 
26
 
Attorney
 
General
 
of
 
New
 
York,
 
New
 
York,
 
27
 
NY,
 
 for
 
the
 
State
 
of 
 
New
 
York
.
 
28
 
29
 
F
OR
 
D
EFENDANTS
A
PPELLANTS
:
 
T
HEODORE
 
 J.
 
B
OUTROS
 ,
 
 J
R
.,
 
Daniel
 
G.
 
30
 
Swanson,
 
Blaine
 
H.
 
Evanson,
 
Gibson,
 
Dunn
 
31
 
&
 
Crutcher
 
LLP,
 
Los
 
Angeles,
 
CA,
 
Cynthia
 
32
 
E.
 
Richman,
 
Gibson,
 
Dunn
 
&
 
Crutcher
 
LLP,
 
33
 
Washington,
 
DC,
 
Orin
 
S.
 
Snyder,
 
Gibson,
 
34
 
Dunn
 
&
 
Crutcher
 
LLP,
 
New
 
York,
 
NY,
 
 for
 
35
 
 Apple,
 
Inc.
 
36
 
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