Click here to close now.


Microservices Expo Authors: Carmen Gonzalez, Liz McMillan, Pat Romanski, Yeshim Deniz, Jason Bloomberg

Related Topics: Wearables, Mobile IoT, Microservices Expo, Agile Computing

Wearables: Article

[Update] DOJ Sues Apple, Five Publishers for Antitrust

Those charged include Macmillan, Penguin, Simon & Schuster, Hachette and HarperCollins

The Justice Department sued Apple and five prominent book publishers Wednesday morning for colluding to fix the price of iPad-borne e-books. The suit was filed in federal court in Manhattan. Sixteen states have filed separate civil suits so far looking for money.

Those charged include Macmillan, Penguin, Simon & Schuster, Hachette and HarperCollins.

Simon & Schuster, Hachette and HarperCollins immediately agreed to settle and terminate their arrangements with Apple, clear any joint e-book ventures with the government and report any communications with other publishers to the DOJ for the next five years.

Hachette and HarperCollins have agreed to pay a total of about $51 million in restitution to e-book customers to settle the states' suit. Simon & Schuster is still negotiating.

Bloomberg said they might fold to avoid the heavy cost of antitrust litigation.

Apple and Macmillan reportedly won't settle - or even talk anymore about settlement. Penguin also remains defiant.

They deny colluding to jack up the price of e-books and are expected to argue that Apple's two-year-old agreements with publishers were good for competition. Apple's anti-Amazon deals let publishers, not vendors, set the price.

That's called the agency model and restricts discounting by retailers.

Claiming the agency model is anticompetitive, Washington wants Amazon and other retailers to decide what to charge and void the "most-favored nation" clauses in Apple's contracts that require booksellers to sell it e-books at their lowest prices with Apple getting a 30% commission.

Two years ago when the iPad came out Amazon was buying at a discount and selling the cream of the publishers' titles for an artificially low $9.99, often below cost to gain market share. That's why the publishers liked the Apple arrangement so much.

The government alleges that the Apple deal resulted in consumers paying tens of millions of dollars more than they had to. It says, "As a result of the conspiracy, consumers are now typically forced to pay $12.99, $14.99 or more for the most sought-after e-books."

The DOJ alleges the conspiracy (called Project Z) began in the summer of 2009. For color, it says that CEOs of the publishing companies met about once a quarter in the private dining rooms of upscale Manhattan restaurants or in London and had 56 phone calls - not to mention e-mails - where they discussed confidential business and competitive matters including Amazon's loathed e-book pricing, which was then aggravated by Amazon cutting direct deals with authors that bypassed publishers altogether.

According to the government's complaint, one of the CEOs said, "Our goal is to force Amazon to return to acceptable sales prices through the establishment of agency contracts in the USA....To succeed our colleagues must know that we entered the fray and follow us."

According to estimates by the Association of American Publishers e-book sales were up 117% last year to $969.9 million, returning a higher margin than paper books.

The Consumer Federation of America says consumers will pay about $200 million extra for e-books this year.

The DOJ essentially destroyed Microsoft at the height of its powers a generation ago with its antitrust suit. Ironically Apple hit an all-time high Tuesday and for one brief shining moment had a market cap worth $600 billion.

People didn't have this kind of problem when we went from the scroll to the codex.

There's a copy of the 49-page federal suit on Scribd thanks to Forbes. See

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at) or paperboy(at), and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

@MicroservicesExpo Stories
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively.
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
Achim Weiss is Chief Executive Officer and co-founder of ProfitBricks. In 1995, he broke off his studies to co-found the web hosting company "Schlund+Partner." The company "Schlund+Partner" later became the 1&1 web hosting product line. From 1995 to 2008, he was the technical director for several important projects: the largest web hosting platform in the world, the second largest DSL platform, a video on-demand delivery network, the largest eMail backend in Europe, and a universal billing syste...
Saviynt Inc. has announced the availability of the next release of Saviynt for AWS. The comprehensive security and compliance solution provides a Command-and-Control center to gain visibility into risks in AWS, enforce real-time protection of critical workloads as well as data and automate access life-cycle governance. The solution enables AWS customers to meet their compliance mandates such as ITAR, SOX, PCI, etc. by including an extensive risk and controls library to detect known threats and b...
Docker is hot. However, as Docker container use spreads into more mature production pipelines, there can be issues about control of Docker images to ensure they are production-ready. Is a promotion-based model appropriate to control and track the flow of Docker images from development to production? In his session at DevOps Summit, Fred Simon, Co-founder and Chief Architect of JFrog, will demonstrate how to implement a promotion model for Docker images using a binary repository, and then show h...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Overgrown applications have given way to modular applications, driven by the need to break larger problems into smaller problems. Similarly large monolithic development processes have been forced to be broken into smaller agile development cycles. Looking at trends in software development, microservices architectures meet the same demands. Additional benefits of microservices architectures are compartmentalization and a limited impact of service failure versus a complete software malfunction....
Despite all the talk about public cloud services and DevOps, you would think the move to cloud for enterprises is clear and simple. But in a survey of almost 1,600 IT decision makers across the USA and Europe, the state of the cloud in enterprise today is still fraught with considerable frustration. The business case for apps in the real world cloud is hybrid, bimodal, multi-platform, and difficult. Download this report commissioned by NTT Communications to see the insightful findings – registra...
Manufacturing has widely adopted standardized and automated processes to create designs, build them, and maintain them through their life cycle. However, many modern manufacturing systems go beyond mechanized workflows to introduce empowered workers, flexible collaboration, and rapid iteration. Such behaviors also characterize open source software development and are at the heart of DevOps culture, processes, and tooling.
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult - let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and li...
DevOps Summit at Cloud Expo 2014 Silicon Valley was a terrific event for us. The Qubell booth was crowded on all three days. We ran demos every 30 minutes with folks lining up to get a seat and usually standing around. It was great to meet and talk to over 500 people! My keynote was well received and so was Stan's joint presentation with RingCentral on Devops for BigData. I also participated in two Power Panels – ‘Women in Technology’ and ‘Why DevOps Is Even More Important than You Think,’ both ...
In a report titled “Forecast Analysis: Enterprise Application Software, Worldwide, 2Q15 Update,” Gartner analysts highlighted the increasing trend of application modernization among enterprises. According to a recent survey, 45% of respondents stated that modernization of installed on-premises core enterprise applications is one of the top five priorities. Gartner also predicted that by 2020, 75% of
As the world moves towards more DevOps and microservices, application deployment to the cloud ought to become a lot simpler. The microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. In his session at 17th Cloud Expo, Raghavan "Rags" Srinivas, an Architect/Developer Evangeli...
Our guest on the podcast this week is Jason Bloomberg, President at Intellyx. When we build services we want them to be lightweight, stateless and scalable while doing one thing really well. In today's cloud world, we're revisiting what to takes to make a good service in the first place. Listen in to learn why following "the book" doesn't necessarily mean that you're solving key business problems.
For it to be SOA – let alone SOA done right – we need to pin down just what "SOA done wrong" might be. First-generation SOA with Web Services and ESBs, perhaps? But then there's second-generation, REST-based SOA. More lightweight and cloud-friendly, but many REST-based SOA practices predate the microservices wave. Today, microservices and containers go hand in hand – only the details of "container-oriented architecture" are largely on the drawing board – and are not likely to look much like S...
In their session at DevOps Summit, Asaf Yigal, co-founder and the VP of Product at, and Tomer Levy, co-founder and CEO of, will explore the entire process that they have undergone – through research, benchmarking, implementation, optimization, and customer success – in developing a processing engine that can handle petabytes of data. They will also discuss the requirements of such an engine in terms of scalability, resilience, security, and availability along with how the archi...
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
The last decade was about virtual machines, but the next one is about containers. Containers enable a service to run on any host at any time. Traditional tools are starting to show cracks because they were not designed for this level of application portability. Now is the time to look at new ways to deploy and manage applications at scale. In his session at @DevOpsSummit, Brian “Redbeard” Harrington, a principal architect at CoreOS, will examine how CoreOS helps teams run in production. Attende...
With containerization using Docker, the orchestration of containers using Kubernetes, the self-service model for provisioning your projects and applications and the workflows we built in OpenShift is the best in class Platform as a Service that enables introducing DevOps into your organization with ease. In his session at DevOps Summit, Veer Muchandi, PaaS evangelist with RedHat, will provide a deep dive overview of OpenShift v3 and demonstrate how it helps with DevOps.
All we need to do is have our teams self-organize, and behold! Emergent design and/or architecture springs up out of the nothingness! If only it were that easy, right? I follow in the footsteps of so many people who have long wondered at the meanings of such simple words, as though they were dogma from on high. Emerge? Self-organizing? Profound, to be sure. But what do we really make of this sentence?