Apple products are extremely popular for their sleek design, their technological efficiency, and their steep price tag…so how would you feel if you were buying products from Apple that were significantly overpriced?
On April 11th, the U.S. Department of Justice brought a lawsuit against Apple – along with several other publishing companies – for precisely this reason. The suit has grown out of the 2010 release of the iPad, when allegedly put a conspiracy in place that would earn Apple a 30% cut on the sale of e-books, resulting in customers paying higher prices for the e-books.
Apple’s agreements with publishing companies have been deemed “illegal” because the agreement allegedly prevents price competition, making them a formidable competitor in e-book sales.
What do you think? Is Apple too powerful a company? Is the DOJ’s suit warranted? What will a suit like this mean for competitors and consumers?