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Justice Department Defends E-Book Price-Fixing Settlement Justice Department Defends E-Book Price-Fixing Settlement

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Justice Department Defends E-Book Price-Fixing Settlement

The Justice Department on Monday pushed back at Apple and other critics of a settlement with a group of publishers over alleged e-book price fixing.

The department accused five publishers and Apple of working together to raise e-book prices in order to force Amazon to raise its prices. Justice Department lawyers filed a lawsuit in April and three publishers agreed to settle the case, but Apple and other critics say the suit will only give Amazon a stranglehold on the market.

In a filing with the United States District Court For the Southern District of New York, the Justice Department defended the settlement, as well as the need for the lawsuit.

"Many critics of the settlements view the consequences of the conspiracy -- higher prices -- as serving their own self-interests, and they prefer that unfettered competition be replaced by industry collusion that places the welfare of certain firms over that of the public," the department's lawyers wrote.

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