Attorney General Eric Holder has asked a federal judge to give his Department of Justice (DOJ) supervision of the Apple App Store and iTunes.
The DOJ’s demand is a disgusting attempted government power-grab into private business.
Holder’s request follows a decision by Denise Cote, a New York Federal District Judge. Cote ruled that Apple violates the US Anti-Trust Laws, which are designed to prevent monopolies and fixed prices.
Apple plans to fight the federal ruling tooth and nail, and will almost certainly appeal.
The mega company currently gets 30 percent commission for any e-books sold on an Apple Store App. According to the Wall Street Journal, the DOJ is pushing for Amazon.com to be able to sell e-books on Apple Apps without the 30 percent commission.
Apple objects to government attempting to control the marketplace. Commission on App stores currently makes up for 10 percent of the company’s revenue. It would be a huge blow to Apple if Holder’s request is granted.
The Wall Street Journal reports that the DOJ is also “seeking a five-year prohibition on new e-book distribution contracts that would restrain Apple from competing on price.”