Apple to DOJ: Bite me; U.S. Justice Department may regret trying to make its e-book a

Apple to DOJ: Bite me; U.S. Justice Department may regret trying to make its e-book antitrust suit stick to Apple


Saturday, May 26, 2012 · 11:01 am ·

“I loved [perusing] U.S. v.Apple et al. for the juicy details:
the 56 phone calls, the clandestine meetings in swank Manhattan eateries, the secret e-mails “double erased” to ensure they couldn’t be traced,” Philip Elmer-DeWitt reports for Fortune. “But what makes Apple’s response, filed Tuesday, such a great read is the clarity and precision with which it cuts the government’s case to shreds. At least as it applies to Apple.” The key paragraph:

The Government starts from the false premise that an ebooks “market” was characterized by “robust price competition” prior to Apple’s entry. This ignores a simple and incontrovertible fact: before 2010, there was no real competition, there was only Amazon. At the Apple entered the market, Amazon sold nearly nine out of every ten eBooks, and its power over price and product selection was nearly absolute. Apple’s entry spurred tremendous growth in eBook titles, range and variety of offerings, sales, and improved quality of the eBook reading experience. This is evidence of a dynamic, competitive market. These inconvenient facts are ignored in the Complaint. Instead, the Government focuses on increased prices for a handful of titles. The Complaint does not allege that all eBook prices, or even most eBook prices, increased after Apple entered the market.

P.E.D. writes, “The government’s lawyers are going to have a hard time proving that Apple violated antitrust laws because the company’s market share in the e-book business before the launch of the iPad was essentially zero.”

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Apple to DOJ: Bite me - Apple 2.0 - Fortune Tech

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