Apple orchestrated a conspiracy to cut out e-book competition and raise price, the judge says in her ruling, handing the U.S. government a big win and handing Apple a guilty verdict it said could have chilling effect of media deals.



Apple violated antitrust laws in the government's e-book price-fixing case against the computing giant, in a quick decision by the Southern District of New York.

'Without Apple's orchestration of this conspiracy, it would not have succeeded as it did,' Judge Denise Cote said in a 160-page opinion issued Wednesday.

Judge Cote said the Justice Department showed in the trial that publishers conspired with each other to eliminate price competition to raise e-book prices and that Apple played a central role in that conspiracy. A trial for damages against Apple will follow, though Apple is sure to appeal the verdict.

Apple didn't immediately respond to a message seeking a response. The Justice Department said it would making a statement shortly.

Only Apple proceeded to trial, which ended June 20 and was expected to be ruled on about two months later. Publishers Hachette Book Group, HarperCollins, Holtzbrinck, Penguin Group and Simon & Schuster settled their claims with the U.S. and a number of states.

The U.S. Department of Justice, which initially sued Apple and a handful of the nation's largest publishers last year, said Apple and the publishers had two objectives when making their deals: raise e-book prices and restrain retail price competition to hurt Amazon.

Apple rejected the charges, saying it did nothing wrong and that a guilty verdict could hurt how digital media deals are negotiated.

During the trial, a high-level Apple executive, Eddy Cue, acknowledged company's deal with publishers caused some e-book prices to rise.

'There is, at the end of the day, very little dispute about many of the most material facts in this case,' Judge Cote wrote in her ruling.