• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Apple

Apple hits Amazon with a well-timed zinger

By
Philip Elmer-DeWitt
Down Arrow Button Icon
By
Philip Elmer-DeWitt
Down Arrow Button Icon
June 18, 2014, 7:40 AM ET

If U.S. District Judge Denise Cote needed a reminder that she backed the bully in the 2013 e-book antitrust ruling that made her infamous on the Internet, Apple and Hachette on Tuesday engineered a doozy.

On Monday, Judge Cote received from Apple and 30 states attorneys general the terms of the deal they’ve cut — presumably a dollar amount in millions — to settle the separate civil case that rode like a room full of expensive suits on Cote’s decision. Apple has promised to take its appeal to the Supreme Court, if necessary. (See: The big ‘if’ in Apple’s e-book settlement.)

A few hours after the deal was made public, a reporter with good connections with Apple PR posted a screen shot of Hachette titles being discounted on Apple’s iTunes bookstore. “Apple is happy,” Peter Kafka wrote on Re/Code, in a widely retweeted headline, “to sell you the Hachette books Amazon won’t stock.”

It was the second high-profile zinger in a month aimed at Amazon. In May, a front-page story in the New York Times reported that the e-commerce giant, to extract concessions from Hachette, had begun delaying delivery of some of the publisher’s titles, removing others from its online bookstore, and in some cases — including J.K. Rowling’s new novel — refusing pre-orders altogether.

“How is this not extortion?” Dennis Loy Johnson of Melville House tweeted in the Times story. “You know, the thing that is illegal when the Mafia does it.”

Amazon, for its part, told AppleInsider that the Hachette stalemate is a standard part of negotiations designed to benefit consumers:

“Negotiating for acceptable terms is an essential business practice that is critical to keeping service and value high for customers in the medium and long term,” it said.

Amazon controlled 90% of the e-book market in 2010 when Hachette and four other publishers signed contracts with Apple that replaced the industry’s wholesale model, in which Amazon set the prices of e-books, with an agency model in which the publishers did.

The plot quickly thickened. The price of e-book bestsellers rose overnight. The DOJ filed antitrust charges. The publishers settled. Apple fought, and lost last year in a high-profile trial in which Judge Cote — who had overseen the publishers’ settlements — played judge and jury. Her ruling, which empowered the monopolist and punished the new entrant, seemed to many critics — including the editors of the Wall Street Journal — to turn U.S. antitrust law on its head.

Ironically, it was Cote herself who set the timeline by which the media spotlight is getting shined and re-shined on her. To prevent the publishers from negotiating collectively, her final judgement specifies a rolling schedule by which their contracts with Amazon expire. This summer it’s Hachette that is getting squeezed, and trying to rally the press to its cause. We could be hearing from the others, one after another, soon enough.

Read Philip Elmer-DeWitt’s Apple coverage at fortune.com/ped or subscribe via his RSS feed.

About the Author
By Philip Elmer-DeWitt
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Most Popular

placeholder alt text
Success
'I had to take 60 meetings': Jeff Bezos says 'the hardest thing I've ever done' was raising the first million dollars of seed capital for Amazon
By Dave SmithDecember 15, 2025
23 hours ago
placeholder alt text
Success
Meetings are not work, says Southwest Airlines CEO—and he’s taking action, by blocking his calendar every afternoon from Wednesday to Friday 
By Preston ForeDecember 15, 2025
1 day ago
placeholder alt text
Success
Sorry, six-figure earners: Elon Musk says that money will 'disappear' in the future as AI makes work (and salaries) irrelevant
By Orianna Rosa RoyleDecember 15, 2025
1 day ago
placeholder alt text
Personal Finance
Current price of silver as of Monday, December 15, 2025
By Joseph HostetlerDecember 15, 2025
1 day ago
placeholder alt text
AI
Deloitte's CTO on a stunning AI transformation stat: Companies are spending 93% on tech and only 7% on people
By Nick LichtenbergDecember 15, 2025
1 day ago
placeholder alt text
North America
Ford writes down $19.5 billion as it pivots electric Lighting line of vehicles
By Sasha RogelbergDecember 15, 2025
19 hours ago

Latest in

Trump
PoliticsWhite House
Trump has ‘an alcoholic’s personality, chief of staff says in wide-ranging Vanity Fair interview. She calls it a ‘hit piece’
By Darlene Superville, Bill Barrow and The Associated PressDecember 16, 2025
41 minutes ago
Trump, Musk
EconomyJobs
Government belatedly reveals loss of 105,000 jobs in October as full DOGE cutbacks come into view
By Paul Wiseman and The Associated PressDecember 16, 2025
48 minutes ago
Trump speaks in the Oval Office
Big TechDonald Trump
You can make up to $200K working in Trump’s new ‘Tech Force’—and you don’t need a degree or work experience
By Dave SmithDecember 16, 2025
1 hour ago
Stephen Greene works a street corner hoping to land a job as a laborer or carpenter on June 3, 2011 in Pompano Beach, Florida.
EconomyJobs
Unemployment hits 4-year high as frozen jobs data shows recession risks getting ‘uncomfortably high,’ top economist Mark Zandi says
By Eva RoytburgDecember 16, 2025
2 hours ago
InnovationTesla
An MIT roboticist who cofounded bankrupt Roomba maker iRobot says Elon Musk’s vision of humanoid robot assistants is ‘pure fantasy thinking’
By Marco Quiroz-GutierrezDecember 16, 2025
2 hours ago
Personal Financegold prices
Current price of gold as of December 16, 2025
By Danny BakstDecember 16, 2025
2 hours ago