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Apple Will Pay $450 Million to Inflate the Price of eBooks

The ebook and Apple controversy

Apple will pay $450 million for the scandal of its role in setting prices for ebooks through the iBooks and iTunes platform, a federal judge in New York has described, who has given his approval to a deal in which Apple will pay that figure.

“Fair and reasonable”, those are the terms used to describe the sentence by Judge Denise Cote. This appeal requires Apple to pay about $450 million to customers who bought some of these e-books between 2010 and 2012, also $50 million in attorney’s fees.

Apple Will Pay $450 Million to Inflate the Price of eBooks
Apple Will Pay $450 Million to Inflate the Price of eBooks

Although this ruling is final, Apple will probably only have to pay this huge amount if it loses its appeal of the 2013 pricing. If it succeeds, Cupertino’s company will only have to pay $50 million to all e-book buyers and $20 million to the lawyers involved.

The lawyers of all clients who bought the e-books have said that they are totally convinced that Apple’s appeal will not be successful . All this was said after announcing that there will be a hearing on the appeal scheduled for December 15 in Manhattan.

Publishers were also involved

Cupertino’s were convicted last year of conspiring with five major publishers to inflate e-book download prices . The publishers Hachette, HarperCollins, Macmillan, Pingüino and Simon & Schuster already had charges against them for the exorbitant figure of $166 million. These publishers together with Apple have been proposing an agent or pyramid model, by which I mean, they convince publishers that they should not rely on standardized prices, therefore one wins and another wins.

If the appeal imposed on Apple is not successful, a total of EUR 566 million will be divided between the consumers affected by the e-books. This is aimed at those affected by purchases at any of the five publishers between April and May 2012.

Apple will tax eBooks at 21% in Spain

VAT on eBooks will be paid in the country where the purchase was made, meaning that Apple will tax eBooks at 21%. This will happen from 2015, before the company of the bitten apple taxed this tax to 3% in Luxembourg . From the date described above, all books purchased in Spain, no matter if the purchase is made in the online store of another country, will be made with 21% VAT that will support the distribution platforms.

Whatever Apple is, it always has problems with e-books. What do you think about the appeal, do you think it’s fair or not?

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