Peter Kafka

Recent Posts by Peter Kafka

Apple Fires Back at the Feds, Amazon

Nearly two days after the Department of Justice filed antitrust charges against Apple and major book publishers, Apple is responding. Here’s a comment from Apple spokesman Tom Neumayr:

The DOJ’s accusation of collusion against Apple is simply not true. The launch of the iBookstore in 2010 fostered innovation and competition, breaking Amazon’s monopolistic grip on the publishing industry. Since then customers have benefited from eBooks that are more interactive and engaging. Just as we’ve allowed developers to set prices on the App Store, publishers set prices on the iBookstore.

Apple’s response is similar to ones made by Penguin Group and MacMillan, two of the five publishers named in the suit. The three other publishers — HarperCollins, Hachette and Simon & Schuster — signed settlements with the DOJ immediately after the suit was filed Wednesday morning. (News Corp., which owns HarperCollins, also owns this Web site.)

It’s worth noting that Apple’s pricing policy with books and apps differs from the setup it has with the music industry. In that relationship, Apple pays the music labels a wholesale price for their digital assets, and then sets the retail price itself.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work