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

Why the e-book judge is ‘concerned’ about Apple’s antitrust deal

By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
July 25, 2014, 1:03 PM ET

The $450 million deal Apple cut last week has hit a roadblock: Denise Cote, the U.S. district judge who ruled last year that Apple had illegally conspired to fix the price of e-books.

As we reported last week, Apple bargained with the plaintiffs — 32 states and a class of e-book readers — as if it expected a partial victory if not a clean reversal on appeal.

According the proposed settlement, that $450 million gets reduced to $70 million if her ruling is sent back and goes to $0.00 if her ruling is thrown out.

According to the plaintiffs, it was the best deal they could get.

In a teleconference Thursday, Judge Cote made it clear that she had serious problems with both the language of the settlement and its terms.

What she found “most troubling,” according to the transcript, was the “very, very steep discount” spelled out in the settlement if the case comes back to her. Why, she asked, would Apple pay only $70 million — $50 million to consumers, $20 million in fees.

“I have a very serious question about whether the payment of just $50 million to consumers can be justified,” she said.

She also expressed concern that if payments are delayed, consumers who change their e-mail addresses might not get their share.

None of the lawyers pointed out that by asking for new terms, the judge herself was delaying payment.

Follow Philip Elmer-DeWitt on Twitter at @philiped. Read his Apple (AAPL) coverage at fortune.com/ped or subscribe via his RSS feed.

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