Apple describes US' proposal to regulate e-book sale as "draconian and punitive"

By IVCPOST Staff Reporter

Aug 03, 2013 07:57 AM EDT

Apple Inc. described the US Justice Department's proposition to be harsh and vindictive. The justice department recommended a court order that would regulate the electronic books sale of the corporation.

The federal government and 33 states presented their proposal today in Manhattan's US District Court. They all asked the judge to order Apple to cancel its current contract with the five publishers that conspired with it. They also proposed to appoint somebody who would monitor Apple's antitrust compliance for 10 years.

"Plaintiffs' proposed injunction is a draconian and punitive intrusion into Apple's business," Apple remarked in a court filing. "Plaintiffs propose a sweeping and unprecedented injunction as a tool to empower the government to regulate Apple's businesses."

The proposal of the government would demand Apple to look for new ways to do business with publishers. This move was expected to affect the company's digital music sales including media files. In 2012, Apple generated US$12.9 billion from sales of e-books, films, music, software and services. The figure represented around 8.2% of the company's total revenue. In 2010, Apple launched e-books to increase the appeal of iPad as a reading gadget.

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