US sues Apple, publishers over e-book pricing

According to the lawsuit filed in US District Court in Manhattan by the US Department of Justice's Antitrust Division, Apple made an agreement with publishers on a so-called agency model, in which the publishers would set the retail price and give retailers no power to alter that price.

The conspired move will result in a significant hike in e-book prices, and Apple would be guarantee a 30 percent "commission" on each e-book sold, the law suit said.

The lawsuit alleged the conspiracy came when Apple was preparing to launch the iPad in 2010, aiming to limit Amazon's ability to discount e-books and challenge the market dominance position held by Amazon in the e-book market.

"To effectuate their conspiracy, the publisher defendants teamed up with defendant Apple, which shared the same goal of restraining retail price competition in the sale of e-books," the lawsuit said.