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Apple News: eBook Price Fixing, Brooklyn, And San Bernardino

Apple Inc. logo Apple, Inc. Has been in the news a lot recently. So, it can be a little confusing to keep track of events. Below is a brief summary of three separate court cases.

First, the U.S. Supreme Court (SCOTUS) declined to hear an appeal by the tech giant about ebook price-fixing with book publishers. The U.S. Justice Department had sued Apple and several book publishers in April, 2012. A lower court decision in 2013 found Apple guilty. Since the SCOTUS declined to hear the appeal, then the lower court decision stands, and Apple must pay a $450 million class-action settlement. Fortune Magazine reported:

"The publishers—Hachette, Penguin, Simon & Schuster, HarperCollins and Macmillan—promptly settled the case, but Apple chose to fight the charges in court. This led to a highly publicized trial in which U.S. District Judge Denise Cote issued a lengthy ruling that Apple had clearly violated Section 1 of the Sherman Act... The price-fixing case, which transfixed the publishing industry, began in 2010 when Apple’s late CEO, Steve Jobs, persuaded five major publishers to sell books on the iPod. Under the arrangement, which was designed to wrest pricing power from Amazon, the publishers shifted to a so-called “agency pricing” model in which they set the price and passed along a commission to Apple."

Second, in California Apple has appealed a lower court's decision forcing it to unlock an iPhone (running iOS 9) used by one of the San Bernardino attackers. A decision in that appeal is pending. The Federal Bureau of Investigation (FBI) admitted during testimony before Congress that it had erred when it reset the associated iCloud password, making it more difficult to access the attacker's iPhone.

Third, a court in Brooklyn (New York) ruled late in February that Apple did not have to unlock a Brooklyn drug dealer's iPhone running the iOS 7 operating system.The tech giant had initially agreed to unlock the phone, but then declined when the court demanded first more information before issuing a search warrant. Bloomberg Business reported:

"When the government first contacted Apple about the drug dealer’s phone, an Apple “data extraction specialist” said it could find data on pre-iOS 8 phones after receiving a search warrant. The next day, the government sought a warrant from [Judge] Orenstein..."

Federal Bureau of Investigation logo Prosecutors have used the All Writs Act in both the Brooklyn and San Bernardino cases. Bloomberg Business reported that prosecutors In the Brooklyn case argued:

That Apple routinely extracted data from such devices shows the government’s request is not “burdensome” and doesn’t violate the All Writs Act, a 1789 law that prosecutors used to demand that Apple help access data on locked phones, the U.S. said. In refusing the government, Orenstein sided with the company’s claim that prosecutors were taking the law too far. He said Congress should resolve the issue. In their appeal, prosecutors said the All Writs Act authorizes courts to issue such warrants and that Orenstein’s “analysis goes far afield of the circumstances of this case and sets forth an unprecedented limitation of federal courts’ authority.”

Bloomberg Business also reported:

"Apple helped the government access data on at least 70 iPhones before it stopped cooperating, according to prosecutors. For phones using older operating systems, the company can extract data from locked devices at its headquarters, according to a guide it produced for law enforcement..."


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