Publisher defendants Penguin and Macmillan filed their first answers to the Department of Justice’s antitrust law suit in Federal Court on Tuesday, with both companies categorically denying the charges. Most broadly, Penguin repeats its contention that it “did not conspire to fix the prices of eBooks with other publishers or with Apple. Penguin, at the invitation of Apple, independently negotiated and ultimately entered into a vertical distribution agreement with Apple.” They argue “a vertical distribution agreement is presumptively pro-competitive. New entry is presumptively pro-competitive. Broader distribution is presumptively pro-competitive. Lower barriers to entry are presumptively pro-competitive. Yet the Government intentionally […]
