The U.S. Department of Justice has released a proposed remedy addressing Apple’s e-book price fixing, for which the company was found guilty last month. Under the proposal, Apple would be required to terminate “existing agreements with the five publishers with which it conspired” and to “refrain for five years from entering new e-book distribution contracts which would restrain Apple from competing on price.” The company would be prohibited from “again serving as a conduit of information among the conspiring publishers or from retaliating against publishers for refusing to sell e-books on agency terms.” Apple would also be prohibited from entering into agreements with any content providers that are “likely to increase the prices at which Apple’s competitor retailers may sell that content.” Additionally, for two years, Apple would be required to allow other retailers — such as Amazon and Barnes & Noble — to provide links from their own e-book apps to their e-bookstores, allowing for easy comparison between their own prices and Apple’s prices.
The DOJ is also “asking the court to appoint an external monitor to ensure that Apple’s internal antitrust compliance policies are sufficient to catch anticompetitive activities before they result in harm to consumers.” Apple would pay the salary and expenses of the court-appointed monitor. It must be noted that the DOJ’s proposal must be approved in court. A hearing on the remedies is scheduled to be held on August 9.