U.S. District Judge Denise Cote has issued an injunction against Apple for its involvement in fixing e-book prices, Reuters reports. Cote barred Apple from entering any agreements with the five major publishers — Macmillan, Penguin, Simon & Schuster, HarperCollins, and Hachette — that would impede its ability to reduce e-book prices or offer discounts.
Judge Cote also said an external monitor would be appointed for two years to prevent antitrust behavior from Apple. The terms will expire after five years, but the judgment could be extended in one-year increments. As expected, no App Store changes were included in the injunction.
Additionally, GigaOM notes Apple may not enforce most-favored-nation clauses in any e-book publishing contracts for five years. The company must also stagger new contract negotiations with the five major publishers in an order set by the judge. Apple plans to appeal the injunction.
