Justice Dept. Warns Apple Over eBooks

    In this Dec. 7, 2011 photo, a person stands near the Apple logo at the company's new store in Grand Central Terminal in New York. A federal agency is siding with Apple and ordering an import ban on HTC phones that infringe on a patent belonging to the iPhone maker. The U.S. International Trade Commission said Monday, Dec. 19 that the ban will take effect April 19 so that wireless carriers will have time to adjust their plans. (AP Photo/Mark Lennihan)

    Mark Lennihan / AP Photo

    Apple didn't get to bask in the glory of its new iPad for long. The Justice Department has warned the company—along with five of the biggest U.S. publishers—that it plans to sue them for allegedly colluding to raise the price of electronic books, sources tell The Wall Street Journal. The case alleges that just before the release of the first iPad, Apple worked with publishers to adopt a retail model in which the publishers set a price and Apple took a 30 percent cut of sales. The move was a reaction against Amazon, which had frightened publishers by selling e-books at $9.99. After Apple adopted the pricing model, the publishers were able to demand a similar one from Amazon.

    Read it at The Wall Street Journal