Apple Found Guilty of EBooks Conspiracy

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July 11 (Bloomberg) -- Steven Levy author of "In The Plex: How Google Thinks, Works, and Shape Our Lives" and Wired senior writer, discusses the ruling against Apple in its EBook pricing and the outlook for the books online. He speaks on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Steven levy.

Are you surprised by the judge's decision?

They really wanted to underline the bigger issue here, that these prices were in response to amazon, the real big player in e-books.

They could not get around the fact that -- prices ended up higher for consumers.

It is almost like antitrust flipped on its head.

The monopoly charged a lower price?

What happened was the monopoly subsidized books.

They made a vow, amazon, jeff bezos saying that we are not going to sell any bestseller for more than $10. apple said we do not want to compete with that, we have our own model.

30% of everything, and we want you to be in that realm there, and that will make prices higher.

Publishers were terrified of amazon, and they made a new model with prices not only on the apple side but on the amazon side.

Amazon could not discount the books like they did before.

Apple says they will appeal the ruling, but it made the point quite forcefully that it does not append -- it does not depend on e-book sales.

Services is really where it will get the bulk of the revenue in the future.

That is exactly the point.

I had another book about the ipod, how apple deals with the music industry to set prices there.

Anyone doing separate negotiations, they just wanted one price and had all the news accompanies, to herd them into specific prices.

That set the stage for the current situation with e-books, but we not as big a market for apple.

But there will be movies and all sorts of other things in apple's store.

Apple does not want its store to only be a little appendage, it is very central to where they are to having deep relationships with all the content companies.

What would you predict the size would be 10 years from now?

Will there be only one or two players?

It is kind of like the big bang.

You get fewer and fewer players, but it cannot hold an open platform like we have on the web.

Is the answer we are going to have cheaper book prices this summer?

We already have cheap book prices because when they set the prices high for an electronic book, it is not the same as a printed book.

Authors now can say, wait a minute, i can get the same deal a publisher can.

Why don't i publish my own book?

Brand x books.

Maybe they are not as good as the book that the publishers have, like a michael connelly or stephen king book.

People come out with their generic thrillers, and they cost two dollars and set of $12 or $14. the guy who negotiated all these deals -- will it be harder for him in sun valley this time around?

He might stay in his room for a while, but he will come out because he is with one of the most powerful companies in the world and everybody still wants to talk to apple.

Apple is still the big guy on the block.

That's right, everyone waiting for their biggest -- everyone waiting for the next step there.

Steve leavy with "wired" magazine.

This text has been automatically generated. It may not be 100% accurate.


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