The Department of Justice, ("DOJ"), has sued Apple. The DOJ alleges that Apple colluded with publishers to set ebook pricing. Apple denied the DOJ allegations. No, I am no expert on the legal aspects of collusion, ergo I am not going to jump into this foray with statements that Apple did no wrong. The TV commentators, experts on everything, will not be as reserved. I do not know the law in this matter. However, I wish that if Apple is innocent of these charges, they do not settle. Anecdotally speaking, I have published more than a dozen books with Apple. Apple allows me, the publisher, to set any price I want.There is no apparent reason why Apple should go gently into the DOJ night. And if Apple is innocent, I wish the DOJ would have to write Apple a check to cover Apple's legal fees. I know that the smart business decision is to settle with the DOJ, admit no wrong doing, write the DOJ a check and get back to the business of creating jobs in America. However, I hope Apple defends on principle and leaves the smart business decision behind. The litigation alone will create some jobs too.
I am not taking defendant or plaintiff sides on this matter. I am however in favor of defense based on principle rather than settlement because it is cheaper than a defense. I have had to settle litigation myself because the cost of defense was greater than the cost of a settlement. It would be nice to know that a company values its image more than it values its cash position. Apple can certainly afford to defend on principle. And if they are innocent, I hope they do.
The DOJ a few years ago went after Google. Google allegedly knowingly allowed Canadian pharmacy companies to advertise on Google and sell inexpensive medicine to American consumers. Heaven for bid are they bad? Drink any Canadian beer lately? Beer imports good. Medicine imports bad. Google was fined $500 million, which they paid. American consumers took it in the shorts too. For example, diabetic testing strips which can be bought for 30 cents from Canadian firms now cost Americans $1 each. The price will come down again as soon as we can buy them from China. I do not know the details, but Google settled.
The current administration does not like anyone with more cash than they have, more innovative than they are and perhaps still bleeding from the cuts that Steve Jobs gave Obama on American education.
Robert J. Sherwood
"It would be nice to know that a company values its image more than it values its cash position." Isn't this a large reason why corporations settle rather than go through a lengthy trial? They value their image more than the money it costs them to protect that image thus avoiding being dragged through the mud, even if they are innocent, in a very public forum?
ReplyDeleteAlso, are you telling me that as a result of Google settling the American consumer was forced to pay higher prices on medication? You can still seek out those Canadien companies on the internet. Moreover, you make it sound like medical supplies went up in price BECAUSE of Google's settlement. I don't see what one has to do with the other.