AG Zoeller: Indiana E-book purchasers to receive $8.6 million from Apple price-fixing victory

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INDIANAPOLIS, Ind. – Hoosiers who purchased electronic books (E-books) from April 1, 2010 to May 21, 2012 should now be receiving account credits or checks totaling approximately $8.6 million, as a result of the successful prosecution of a price-fixing case against Apple, Inc. Credits range from $1.56 to $6.93.

Apple paid $400 million in nationwide consumer compensation after the United States Supreme Court denied Apple’s request to review the decision of a lower court finding Apple had violated the antitrust laws.

“Indiana and its partner states worked diligently to refund consumers negatively impacted by this price-fixing scheme,” Indiana Attorney General Greg Zoeller said. “Attorneys general will continue to fight on behalf of the public to ensure this type of anti-consumer collusion is deterred in the future.”

Indiana joined 33 states in investigating and prosecuting Apple for its participation in the conspiracy to artificially inflate E-book prices. In June 2013, the states, along with the United States Department of Justice, tried the case against Apple.

In July 2013, the United States District Court for the Southern District of New York ruled that Apple conspired with the following five major U.S. Publishers: Penguin Random House, Holtzbrinck Publishers LLC, Hachette Book Group, Inc., HarperCollins Publishers LLC and Simon & Schuster, Inc. In June 2015, the U.S. Court of Appeals for the Second Circuit affirmed that ruling. And in March 2016, the U.S. Supreme Court denied Apple’s request to review the Second Circuit’s decision.

Under a contingent settlement agreement between the states and Apple, the Supreme Court’s decision triggered Apple’s obligation to pay the maximum consumer compensation amount of $400 million. All five of the conspiring publishers settled prior to trial, paying a total of approximately $166 million in nationwide consumer compensation. Most of that money was distributed to consumers in March 2014.

The distribution that began this week consists of the $400 million Apple payment and additional funds remaining from the publisher settlements. The $566 million total nationwide compensation to consumers is more than twice the estimated amount of actual damages.

Indiana consumers account for approximately 2 percent of E-book purchasers nationwide, and thus are expected to receive approximately $8.6 million from this distribution, in addition to the $2.9 million already paid to Hoosiers.

The amounts received by E-book purchasers will be based on the number of E-books purchased between April 1, 2010 and May 21, 2012. For each E-book that was a New York Times bestseller, consumers will receive $6.93. For all other E-books, the payment will be $1.57.

Distribution process for E-book purchasers

Distribution of the consumer payments began this week. Customers who purchased E-books through Sony or Google will receive checks in the mail. Customers who purchased E-books through Amazon, Apple, Barnes & Noble, or Kobo will automatically receive credits in their accounts (unless they previously requested to receive checks).

Customers receiving account credits should expect to receive an email this week or shortly thereafter, indicating that the credits are available in their accounts. Credits can be used to purchase anything sold by these retailers, not only E-books.

The Settlement Administrator has set up a website and toll-free phone number for consumers with questions about this distribution. Please visit www.ebooklawsuits.com or call (866) 686-9333 for more information.

For consumers with questions about this distribution, please visit www.ebooklawsuits.com or call (866) 686-9333 for more information.

Zoeller thanked Deputy Attorney General Amanda Lee and former Deputy Attorneys General Luminita Nodit and Jeremy Comeau for their work on this case.