Dive Brief:
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Apple Inc. had a good day in court Monday in its attempt to appeal a district court ruling by Judge Denise Cote that its agreement with five publishers on e-book prices amounted to collusion and breached antitrust law.
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The final decision may not be known for six months, but there was an indication in the questions and commentary by judges in the Second Circuit Court in Manhattan Monday that two of the three of them believe the U.S. Department of Justice should have gone after Amazon, rather than Apple.
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It’s a significant turn of events, considering that the antitrust case hasn’t gone Apple’s way under Judge Cote. Journalists reported quips by the judges and much laughter in the courtroom, often at the government lawyer’s expense.
Dive Insight:
It remains to be seen, but Monday’s arguments seemed like they could add up to what many observers have long said, that the real perp when it comes to antitrust issues in e-book pricing is Amazon, a company that has so far been left alone by the Justice Department. (Many critics, including economists, say that Amazon is wielding monopsony power — like a monopoly but using power against suppliers rather than consumers — that is harmful to the market and in the long-term to consumers.)
The day also seemed to undermine some of the rationale used by Judge Cote, who has been criticized as being unclear on antitrust law, perhaps deciding the case before hearing it, and who appointed a personal friend to be the monitor who keeps an eye on Apple’s e-book business.
In any case, Apple does seem to have turned the tide of this long-running case in court. The question is whether that’s enough to ultimately change the verdict.