Apple is on trial for refusing to pretend that the company has done something wrong.
In 2009, Apple invited five major publishers to sell e-books through the forthcoming iPad, on the basis of the “agency model.” The publishers would set the prices, Apple would take a 30% cut. Apple also required that the e-books not be sold more cheaply elsewhere.
The publishers were happy to agree because Amazon had been buying new e-books wholesale and steeply discounting them, sometimes at a loss to itself, in order to sell them at $9.99. In the eyes of the publishers, this price seemed too low a benchmark. Apple’s deal gave them new clout in negotiating with Amazon.
The government says average book prices rose in the wake of this “conspiracy.” Apple says prices declined. It’s irrelevant.
To charge a price that some persons dislike violates nobody’s rights. Nor does stipulating terms of contract that a prospective partner dislikes and may reject. Anti-trust law has nothing to do with justice. It’s a bludgeon that some businesses — in conspiracy with the government — use to thwack competitors.
No violation of anyone’s rights has even been claimed in this case, let alone established. Yet five innocent parties have been forced to pay tens of millions to the government and accede to curtailment of their right to contract. And Apple, having refused to be bullied, must defend itself in court.
That’s the crime, and government officials are the ones committing it.
This is Common Sense. I’m Paul Jacob.
3 replies on “Biting the Apple”
I have been impressed by Apple’s correct attitude of late, in the Senate hearing as well as this position.
Perhaps they should consider a special Reardon metal model of the iPhone 5.
Good for them for sticking to principal..they deserve their successes and their earnings.
I love it!!!
Paul just puts it out there so well! And he is right…
I will go a step further, the government, as a sum, is the biggest criminal in the nation! And they have oodles of lawyers to protect them. I find it astounding.
When the “sleeple” drive the truck, the truck will crash into the ditch…
An unjust law encourages didrespect for the law and its enforcers. Which makes one wonder if gradually increasing disrepect and contempt for the government isn’t the game plan. Which conincidentally was what Alinski laidout in the book “Rules for Radicals” as part of the key steps in holding a successful revolution that collapses a free market/ capitalist system. Alinski and his book were what the president specialized in teaching for four years.
But that just sounds a little paranoid.