Apple Can’t Avoid E-Book Antitrust Cases in US States: Judge

By Nate Raymond

NEW YORK (Reuters) – Apple Inc. lost on Tuesday an attempt to dismiss lawsuits brought by state attorneys general accusing it of colluding with five major publishers to fix e-book prices.

The ruling by federal judge Denise Cote clears the way for attorneys general from 33 states and territories to join lawyers representing consumers in seeking hundreds of millions of dollars in damages at a hearing scheduled for July 14.

In July, following a non-jury trial, Cote found that Apple conspired with publishers between 2009 and 2010 to raise e-book prices and hamper the business of competitors such as Amazon.com Inc.

The states filed a joint liability claim with the U.S. Department of Justice without any objection from Apple and in September obtained a court order against the iPad maker requiring it to appoint a regulatory body to monitor compliance.

However, when the case entered the damages phase, Apple argued that the states had no legal standing to bring an action for damages, arguing that they had not alleged any harm.

But Cote said it was easy to conclude the states had legal standing to pursue the case.

“Apple has not cited any case law to support the distinction it advocates between seeking termination of an antitrust violation and seeking damages for that violation,” she wrote.

The attorneys general in Texas and Connecticut are handling the states’ case. Jaclyn Falkowski, a spokeswoman for Connecticut Attorney General George Jepsen, said in an email that the office was pleased with the decision.

An Apple spokesman did not immediately respond to a request for comment. The company has appealed the finding of liability in the civil lawsuit and denies wrongdoing.

Plaintiffs’ attorneys are seeking $840 million in damages.

The publishers previously agreed to pay more than $166 million to settle antitrust charges.

These include Hachette Book Group Inc. owned by Lagardere SCA, HarperCollins Publishers LLC owned by News Corp, Penguin Group (USA) Inc., Simon & Schuster Inc. owned by CBS Corp and Macmillan owned by Verlagsgruppe Georg von Holtzbrinck GmbH.

The case is In Re: Electronic Books Antitrust Litigation, U.S. District Court for the Southern District of New York, No. 11-md-02293.

(Reporting by Nate Raymond in New York; Editing by Jonathan Oatis)