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Tuesday, August 6, 2013

JUSTICE DEPT WANTS TO CONTROL iTUNES STORE

The Justice Department is seeking to acquire government oversight of Apple’s iTunes and App Store – a move that would give feds control over content ranging from books to music to television shows and movies.
 
After winning an anti-trust lawsuit against Apple in July, the Department of Justice is attempting to gain further price control over the multinational computer corporation.
 
Last month, a federal judge ruled that Apple is guilty of conspiring to raise the retail prices of e-books. The Justice Department on Friday proposed sweeping punishments: officials suggested that Apple be forced to terminate contracts it holds with five major book publishers, barred from entering contracts that control e-book prices, and forced to allow iPhone or iPad users to directly buy books from other retailers with their devices.
 
If the proposed punishments go into effect, Apple would be required to house a court-appointed monitor who would enforce these regulations and make sure the firm abides by them for at least 10 years.
 
In addition to the proposed consequences, the Justice Department has asked a federal judge to limit Apple’s influence in the publishing market by giving the feds government oversight of iTunes and the App Store.
 
The government hopes to prohibit the corporation from negotiating with media companies to increase prices at companies that rival Apple, as well as its own stores.
 
 

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