Apple should be banned from entering anti-competitive e-book distribution contracts for five years and should end its business ties with five publishers with which it conspired to raise e-book prices, federal and state regulators said on Friday.
The U.S. Department of Justice and 33 U.S. states and territories proposed those sanctions after a federal judge in New York found in a civil antitrust case last month that Apple played a “central role” in a conspiracy with the publishers to raise e-book prices.
Regulators also want Apple to let retailers such as Amazon.com Inc and Barnes & Noble provide links to make it easier for consumers to compare prices.
They also want Apple to use an outside monitor to ensure that its internal antitrust compliance policies are strong enough to catch illegal conduct before consumers are harmed. The proposed changes require the approval of Judge Denise Cote.
“Under the department’s proposed order, Apple’s illegal conduct will cease, and Apple and its senior executives will be prevented from conspiring to thwart competition,” said Bill Baer, head of the Justice Department’s antitrust division.
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