Apple Inc is en route for a showdown with the U.S. government on Fridayurged that tough new restrictions are planned to be imposed on the company for illegally conspiring to raise e-book prices. The proposed changes by the Department of Justice and the other 33 of U.S. states and territories are designed to stop Apple from committing further antitrust violations after U.S. District Judge Denise Cote said on July 10 Apple had a vital role in a conspiracy with five major publishers to raise e-book prices.
But the proposed changes extend beyond e-books, potentially limiting Apple's ability to negotiate for such content as movies, music and TV shows, and increasing regulatory oversight of other business areas such as the company' App Store. In a court filing, Apple called the proposed injunction a "draconian and punitive intrusion" into its business that would hurt consumers and competition, and was "wildly out of proportion" to the harm it was meant to address.
Federal and state regulators disagreed and told
about this that the resulting cost of this relief - not only in dollars but also lost opportunities for American businesses and consumers - would be vast," it said.