A top Apple executive downplayed the theory of an e-book price-fixing
conspiracy at an antitrust trial Monday, saying publishers were already
moving away from Amazon's model when Apple launched its iPad.
Eddy
Cue, an Apple senior vice president, said in his second day of testimony
that Apple introduced e-books for the iPad that were not available on
Amazon, which was selling many popular e-book titles for $9.99.
"We
were making available books immediately that weren't going to be
available for months and at really great prices," Cue said as he was
questioned by Apple attorney Orin Snyder in US federal court in New
York.
"We didn't raise prices for books that weren't available."
Cue
said that at the time, at least four major publishers had delayed books
to Amazon or threatened to do so in a practice known as "windowing,"
because of dissatisfaction with the pricing model.
Cue's testimony
sought to blunt the US government argument that Apple and major
publishers conspired to end Amazon's pricing scheme and impose a new
system with higher prices for electronic books when the iPad was
introduced in 2010.
But Cue, in response to questions from US
Justice Department lawyer Lawrence Buterman, acknowledged that some
e-book prices did go up.
Cue admitted that the day of the iPad
launch, a memoir by the late US senator Edward Kennedy, "True Compass,"
was not windowed and that Apple was selling the book for $14.99 while it
retailed on Amazon for $9.99.
"For that book, that's correct," Cue said.
Buterman said that only 37 books were windowed, saying this was a relatively small number.
Cue countered that "37 could be a huge number if it's the right books."
Cue
also came in for tough questioning about a December 21, 2009 email
updating Apple's chief at the time, Steve Jobs, in which he said the
publishers were generally pleased with Apple's stance because it "solves
Amazon issue."
Buterman asked if "solving" the "Amazon issue" meant the publishers agreed to impose higher prices on other retailers.
But Cue denied this and said he was referring to following the publisher's demand that Apple .........readmore
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