Apple customers to receive $400M iBooks settlement payments on Tuesday

Posted:
in General Discussion edited June 2016
Customers impacted by Apple's alleged iBooks price fixing scheme will this week receive settlement payments in the form of store credit or checks for up to $6.83 per e-book, the law firm representing plaintiffs in the case announced on Monday.




Hagens Berman issued a press release notifying e-book purchasers of plans to dole out Apple's $400 million settlement fund starting Tuesday.

In compliance with the agreed upon terms, consumers are to receive payouts valued at twice their losses, which translates to $1.57 per most e-books and up to $6.93 for every New York Times bestseller. Titles from Hachette Book Group, HarperCollins Publishers, Macmillan (Holtzbrinck Publishers), Penguin Group and Simon & Schuster purchased between April 1, 2010 and May 21, 2012 qualify for the program.

As previously noted, customers who bought digital books from Amazon, Barnes & Noble, Kobo and Apple are eligible for payouts, which should arrive automatically in their respective store accounts. Depending on prior survey responses, consumers might alternatively receive checks in the mail.

Apple was first hit by a U.S. government antitrust lawsuit over the company's "agency model" e-book price structure. Investigation showed marketing on a "most favored nations" basis restricted content owners to sell their wares to another retailer for a lower price, a system contrasted by the "wholesale model" preferred by industry leader Amazon. Unlike the agency model, Amazon's strategy allows retailers to buy content in bulk and set unit pricing at or below cost.

After being found guilty of colluding with publishers to artificially raise the price of e-books sold through the iBookstore, and a failed appeal to the Supreme Court, Apple agreed to settle a related class-action lawsuit seeking redress over questionable business practices. Apple, lawyers representing general consumers and state attorneys general representing citizens in 33 U.S. states and territories agreed to the terms.

The coming distribution round will be the second in the case.
«1

Comments

  • Reply 1 of 25
    Too bad this doesn't apply to those of us in Canada.

    I bought several ebooks, and in no way feel slighted or overcharged by Apple. If they sent me any money I'd just turn around and use the credit to buy something else from Apple, effectively sending a chunk of that money straight back to Apple.
    edited June 2016 pscooter63stevehfotoformatdavenTurboPGTjbdragonjony0
  • Reply 2 of 25
    Well maybe the specifics of the law here were broken but who can say it doesn't feel really odd for our justice system to be punishing companies that dared to challenge the near monopoly powers of Amazon when it comes to book sales.

    Not saying I don't like less expensive books and maybe this was effective in protecting the consumer? Still feels odd ;)
    latifbpdavenjbdragonjony0
  • Reply 3 of 25
    There's nothing "alleged" about it. They were convicted & found guilty of such.
    paulmjohnsonsingularityboredumb
  • Reply 4 of 25
    jkichlinejkichline Posts: 1,336member
    When I received the survey to get paid, I wrote back and basically said "screw you". Nobody made me buy a book from Apple. I did because it's s better product on a better platform that treats creatives with dignity. Complete misuse of power to destroy competition.
    latifbplolliverTurboPGTjbdragonjony0
  • Reply 5 of 25
    There's nothing "alleged" about it. They were convicted & found guilty of such.
    Does that mean Apple was in the wrong because the DOJ can't tell plus from minus? As has been said elsewhere, if I buy a book from Apple, nobody makes me buy it. Is the government telling me how I can spend my money? DOJ just wanted to see Apple buckle. They acted like Apple was too big for their britches and that crone who was labelled a "judge." If Uncle Same handled his $$$ the way Apple handles theirs, we wouldn't have the debt we have, would we? Everytime there is a disaster of ANY kind even remotely connected with the US, Uncle Obama is handing out money, hugs, kisses. He never seems to mention the debts he has wracked up. He doesn't care, but hey, "Let's go after Apple." A former one term senator who never did anything except get elected president! Is it really that easy? Maybe Donald has a chance after all (not that I like him)
    latifbptallest skillolliverTurboPGTelijahgjbdragonjony0
  • Reply 6 of 25
    snovasnova Posts: 1,281member
    The Antitrust Paradox strikes again.
    jbdragon
  • Reply 7 of 25
    There's nothing "alleged" about it. They were convicted & found guilty of such.
    The class action was separate from the DOJ antitrust suit. As Apple and its fellow defendants settled, no ruling was furnished, leaving the allegations standing. 
    latifbpfotoformaturaharabrucemcTurboPGTjbdragonjony0
  • Reply 8 of 25
    jkichline said:
    When I received the survey to get paid, I wrote back and basically said "screw you". Nobody made me buy a book from Apple. I did because it's s better product on a better platform that treats creatives with dignity. Complete misuse of power to destroy competition.
    This. My iBooks give me a higher royalty and they look the way i designed them. My Kindle versions blow in comparison.
    jony0icoco3
  • Reply 9 of 25
    jkichline said:
    When I received the survey to get paid, I wrote back and basically said "screw you". Nobody made me buy a book from Apple. I did because it's s better product on a better platform that treats creatives with dignity. Complete misuse of power to destroy competition.
    This. My iBooks give me a higher royalty and they look the way i designed them. My Kindle versions blow in comparison.
    That doesn't match the average experience. Indie authors make far more on Amazon, enough that many are simply choosing to forgo listing their titles on iBooks or Kobo, especially with services like Kindle Unlimited. 

    Really, I feel no pity or sorrow that the big publishers are getting squeezed by Amazon. They're worthless fat cats who are destroying themselves. 
    edited June 2016
  • Reply 10 of 25
    Too bad this doesn't apply to those of us in Canada.

    I bought several ebooks, and in no way feel slighted or overcharged by Apple. If they sent me any money I'd just turn around and use the credit to buy something else from Apple, effectively sending a chunk of that money straight back to Apple.
    I think this is an overlooked aspect of the case - the books in question are not necessities, nor was the potential price change significant. So let's say that each a book's price was artificially higher by this kind of competition, the choice to purchase still ultimately belonged to the consumer - either the consumer saw value in the price offered or didn't, no one was forced to spend money.

    This is one of those cases where the individual consumer will receive very little (a few dollars at most) while the government and prime competitor (Amazon) receives a lot. (Unallocated funds are being directed to government coffers.)

    To me this case highlighted the power of lobbying and "greasing the wheels", it's clear that Amazon was the source of the anonymous complaint - a company that despite their razor thin margins and the constant criticisms for their business practices still has extreme amounts of money allocated for lobbying. If the DOJ was truly concerned with the health of the book market they would follow Europe's lead in taking a look at Amazon's business practices. Heck there is a whole wikipedia article dedicated to the b/s that Amazon get up to. 
    jony0
  • Reply 11 of 25
    tallest skiltallest skil Posts: 43,399member
    bobbyfozz said:
    Is the government telling me how I can spend my money?
    Yes; you are “legally” required to purchase health insurance simply for being alive.

    Your point stands, though.
    A former one term senator who never did anything except get elected president!
    He should never have even been senator.



    Just skip to 3:13.
    edited June 2016 TurboPGTelijahg
  • Reply 12 of 25
    ...and how much did the lawyers make ? This was just a huge con by the "legal profession" to extort money when no-one was impacted.
    icoco3
  • Reply 13 of 25
    kamiltonkamilton Posts: 262member
    jkichline said:
    When I received the survey to get paid, I wrote back and basically said "screw you". Nobody made me buy a book from Apple. I did because it's s better product on a better platform that treats creatives with dignity. Complete misuse of power to destroy competition.
    Right on!  Who represents the Amazon enslaved authors who had a chance to see more $ too from iBooks?  Why are content creators not considered?  This case was a sham.  I pay for extra quality and to thank content creators for making my life better.
  • Reply 14 of 25
    razormaidrazormaid Posts: 299member
    After the first iPhone was released apple came to their senses and lowered the price I think $200. I cant remember exactly how quick 3 weeks maybe?  But when I went to the store for an unrelated issue I was told I had been assigned $200 credit for each phone bought because I was being compensated for them lowering the price within 30 days.

    You know what I did?  I was sooooo happy Apple lowered the price to something more reasonable to ensure it sold more that I took the two credits in the form of a print out, walked over to two different people considering the iphone and gave each one my credit to use. I wanted the iPhone to be such a hit I gladly gave up my "credit" to get it into the hands of two others. 

    Thats how i feel about this book deal. 

    Amazon clearly is npt  looking out for the artist if they would they wouldn't be forcing the publishers to sell to them at rock bottom prices. What Apple was trying to do was make sure the writers got their fare share of the pie and for that I applaud them for trying. But this crap of paying us back for something I bought not under duress irks me to no end. 

    It f they send me a credit I'll use it to rebuy the book and gift it to a friend. 
    edited June 2016 mwhiteelijahg
  • Reply 15 of 25
    dewmedewme Posts: 2,097member
    So there you have it, $11.64 magically appeared in my iTunes account. 
  • Reply 16 of 25
    I'm writing a check to Apple and sending it along with a letter stating that I cant, in good conscience, accept the money.  Not sure if they'll cash it, but it's just something I need to do and I hope you all do the same.  If Apple got enough checks and letters like this it would really send a great message.
    TurboPGT
  • Reply 17 of 25
    lkrupplkrupp Posts: 7,154member
    So now Amazon has a virtual monopoly on the e-book market and everybody is happy with that. Wow.
    tallest skilTurboPGT
  • Reply 18 of 25
    SpamSandwichSpamSandwich Posts: 31,185member
    Too bad this doesn't apply to those of us in Canada.

    I bought several ebooks, and in no way feel slighted or overcharged by Apple. If they sent me any money I'd just turn around and use the credit to buy something else from Apple, effectively sending a chunk of that money straight back to Apple.
    The best way for an "eligible participant" to respond to this fraud of a judgment is to ignore the case and not sign up to receive the credit. You'd be stealing with one hand and returning the money, minus attorney fees, with the other.

    i never respond to class-action lawsuits and the dirtbags who file them. They are lawsuits designed entirely for the enrichment of ambulance chasers.
    edited June 2016
  • Reply 19 of 25
    tallest skiltallest skil Posts: 43,399member
    I'm writing a check to Apple and sending it along with a letter stating that I cant, in good conscience, accept the money.  Not sure if they'll cash it, but it's just something I need to do and I hope you all do the same.  If Apple got enough checks and letters like this it would really send a great message.
    What message? They can’t cash it and they can’t do anything to change it. They would also never report it, so nobody’s going to overturn anything.

    I get it, but it’s worthless.
  • Reply 20 of 25
    TurboPGTTurboPGT Posts: 355member
    razormaid said:
    After the first iPhone was released apple came to their senses and lowered the price I think $200. 
    No, that isn't what happened. They launched without a carrier-subsidized business model. They intentionally held that back to squeeze early adopters. After a couple of months, they rolled out the inevitable carrier subsidy model that every other phone on the market embraced at the time.
    singularity
Sign In or Register to comment.