Tag: cartel

Apple fudges book cartel rulings

Apple's Jonathan IveThe company which designer Jonathan Ive described a week or two back as built on integrity has finally agreed to cough up $450 million after it conspired with five publishers to hike the prices of e-books.

On Friday, US district judge Denise Cole told Apple it must pay $40 million to as many as 23 million people if it lost a hearing that showed it was liable under antitrust laws. But Apple is pushing for a fresh hearing and if it is unsuccessful it won’t have to pay anything.

And if that happens, the same judge may have to preside over the same case all over again.

Even though Apple agreed to settle the case in June, it can continue with an appeal  after it was found guilty last year  of conspiring to hike e-book prices and unfairly compete against Amazon.

Apple’s appeal is due to be heard in mid-December and if it is successful it might go to a new trial and continue to ramp up the cost of lawyers who have already racked up an estimated $20 million.

Oracle, Microsoft and Ask.com accused of copying Apple’s cartel ways

1159_tnOracle, Microsoft and Ask.com have been accused of treating their staff in exactly the same way as the fruity cargo cult Apple.

The suit against Microsoft filed by former employees Deserae Ryan and Trent Rau charges, among other things, that Microsoft and other companies entered into anti-solicitation and restricted hiring agreements without the consent or knowledge of its workers.

Oracle, Microsoft and Ask.com are facing suits alleging that they conspired to restrict hiring of staff. The suits are connected to a memo which names a large number of companies that allegedly had special arrangements with Google to prevent poaching of staff.

The document was filed as an exhibit in another class action suit in the US District Court for the Northern District of California, San Jose division over hiring practices. The tech workers who filed that suit alleged that Google, Apple, Intel, Adobe, Intuit, Lucasfilm and Pixar put each other’s employees off-limits to other companies by introducing measures such as “do-not-cold-call” lists.

Those seven tech companies had earlier settled similar charges in 2010 with the U.S. Department of Justice while admitting no wrongdoing, but agreed not to ban cold calling and enter into any agreements that prevent competition for employees.

Google, Apple, Adobe and Intel appealed in September District Judge Lucy Koh’s rejection of a proposed settlement of US$324.5 million with the tech workers, which she found was too low. Intuit, Lucasfilm and Pixar had previously settled for about $20 million.

Now it seems that former employees filing lawsuits against Microsoft, Ask.com and Oracle have asked that the cases be assigned to Judge Koh as there were similarities with the case against Google, Apple and others.

The companies might try to say that since the DOJ did not see it fit to prosecute them before 2010 they must have been legal.

Oracle said that it was excluded from all prior litigation filed in this matter because all the parties investigating the issue concluded there was absolutely no evidence that Oracle was involved.

Microsoft said the employees omit the fact that the DOJ looked into the same claims in 2009 and decided there was no reason to pursue a case against the company.

 

Mercedes & pals fined for market fixing

mercMercedes-Benz and three of its commercial dealers have been  slapped with fines after being found guilty of infringing competition law.

The brand, along with Ciceley, Road Range and Enza have been ordered to pay a total fine of £2.6 million after the watchdog found the quartet had been in cahoots over market sharing, price coordination and exchange of commercially sensitive information.

Despite admitting to joining in with the other four, dealer Northside was spared a fine for sucking up to the OFT.

The dealer was said to have come forward to “provide valuable” evidence of collusion in return for immunity from penalty under the OFT’s leniency policy.

The cartel were found guilty of cosying up in relation to the distribution of vans.

Between 15 January 2008 and 26 January 2010 Ciceley and Northside were said to have got together to manipulate the distribution of vans, while between 1 February 2008 and 26 January 2010  Ciceley and Road Range were found guilty.

Between 8 December 2009 and 26 January 2010 Ciceley, Enza, Mercedes-Benz and Road Range, were found to have manipulated the market when it came to the distribution of trucks.

Ali Nikpay, OFT Senior Director of Cartels, said the action showed that the watchdog would penalise companies that colluded to “deny customers the benefit of fair competition regardless of the size of the firms involved” – although a couple of million is arguably chump change for the group.

She added that the case also showed the watchdog could sniff out cartels regardless of whether someone grassed them up or not.