Apple and US Book Publishers









Initial Details
Research paper p lease use the same topic(Venezuela) and follow the guideline to write the second paper, Nile river, Climate change, and Israel water policy are just examples for you to know how to write it, my topic is Apple and US Book Publisher. and please attachment files Thanks.  
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INSTRUCTIONS NOT FOLLOWED:Hi, can you have a look at those 3 examples of paper 2, you have to make a scale(0-100) for your actors from your paper, and you have to put them at the correct position of the scale. and I request 7 pages. and I only received 6 pages. Please add 1 page atleast, and add the scale. Thank you!
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2.  Paper 2 (15%): Introduction and background of the issue and the 10 actors (6 – 10 pages, not including references).
Submit into the text editor via CANVAS.
Late paper/assignment policy: one letter grade per day.  If the paper is due on September 24, at 12:01 a.m. on September 25 there is an automatic one letter grade deduction.
            This is intended to be a research paper that covers (1) the history of the issue, paying particular attention (2) to the main actors.  There is a minimum of 10 actors that must be included; (3) their influence and positions on the issue, and (4) how the issue (and outcomes) have evolved over time.  This information will be used directly in Assignments 1 and 2, so take your time and do a good job.  See the Purdue OWL for proper citation (APA or MLA is acceptable; in-text or footnote citations are both acceptable).  Re-Read the “Executive Summary; Chapter 1, and Appendix E of Eric Jesse’s “Future of Iran”  to see an incredible example of a brief background, history, and discussion of main actors.  Obviously I am not expecting this level, but if you need to see a great example – there it is.   
Your paper should do the following:
1.    Begin with a very short description of the issue and the continuum. “In this paper I explore the issue of the future status of Iran’s nuclear weapons program. I work with the following issue continuum….” 
2.    Provide a detailed description and history of the issue. What is the status quo, and how and why has that changed (or not) over time?  Focus in on what is being bargained over.  Remember, the forecasting model is designed to predict bargaining outcomes.  As such, it is not very good at, for example, predicting the outcome of elections, since voters do not bargain with each other.  Be specific about the issue and the potential range of bargaining outcomes.   
3.    Identify and discuss the main actors (Minimum of 10 actors). The list does not have to be exhaustive, but you need to demonstrate that you are discovering the players, their influence, and their positions on the issue – you have to do this anyway for Assignment #2). Explain each group and why it is important.  If you claim that President Obama’s position on the issue of Assad’s future in Syria is a “20,” then what is the basis for the rating?  If it is a best guess (and sometimes we have to do that), then explain to me the logic and evidence that goes into making the guess.  You are always better off establishing through solid research your rating of a particular group.  The key here is to be transparent.  Be honest about the process you took. Provide a history of the issue. 
4.    Cite your sources, preferably in-text. You will also need a bibliography.

Solution
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Apple and US Book Publishers
The history of the case starts fromin 2007 when Amazon introduced its first Kindle device. The launch of Kindle created a major market for e-books.  With the launch of Kindle, major e-book online sellers started offering e books at price as low as $9.99. When selling e-books, Amazon used to follow ause the same business strategy that is the same asit used in case offor traditional printed books. In this strategy, the publisher used to suggest a list price and for each book sold by Amazon, the publishers used to getgot a wholesale price. In the very beginning, the cost of a digital e-book was 20% lower than the printed book assince an e-book saves the cost ofon printing, binding, and storing. The “$9.99 price” was viewed  by many asan attempt to remain dominant in the e-book industry. People also felt that this strategy caused difficulty for other retailers to enter the market.
Table 1 Summary of Actor Positions and Infuence
Actor
Position
Influence/Capability
U.S Big Publishers
20
50
Apple and the iBook
40
70
New Business Model
45
60
Most Favored Nation Status
60
40
U.S supreme Court
30
65
U.S Justice Department
35
75
Apple fighting back
45
55
Apple faces the trial
25
30
Apple loses the case
50
55
The E-book Customers
0
20

Figure 1 Position Scale with Actors
             E-book customers                    Most favored Nation  U.S Big Publishers                           Apple & iBook   U.S Justice Dept.

0                                                                                50      Business Model  U.S Supreme Court                    100
No Influence                             Apple faces trial                          Equal Influence                                                                                 High Influence
                                                                   Apple fighting back   Apple loses case

Figure 2 Influence Scale with Actors

Discussion of the Main Actors
U.S. Big Publishers
Five major publishers Penguin Macmillan, HarperCollins, Hachette, and Simon & Schuster found it very challenging as it wasthe situation frustrating since they were used to charge $25 to $35for hardcover books at $25 to $35..  These publishers were scared of the fact that low prices offered for the e-books may cause a decrease in their revenue as there will bedue to depreciation in their hardcover book prices.  SoTherefore, these publishers plotted a schemecolluded to raise the prices of the e-books.
U.S Big Publishers can be considered on the scale of 50, as it has an equal influence on the economy and the growth rate of the company, as it was considered as one of the famous and popular publishers. It influenced the prices of the e-books by colluding to raise the price which had a huge impact on the e-book industry.
Apple and the iBook
In the meantime, Apple was planning another business strategy of introducing its revolutionary iPad in the e-book marketingmarket in 2009, Apple needed a devoted market for “digital books” or a hardware device that could be used for reading. At that time, Amazon controlled 90% of the e-book market was ruled by Amazon. The people at.  Apple made a thorough research and decided to launch its new product called the iPad. The iPad was intended to offer not only an outstanding reading device but also a hardware item that could be used to do manyfor other things .While apurposes, while Amazon's Kindle offered by Amazon could only be used for reading.
The people at Apple made aalso conducted research on the issues of themost publishers in the U.S. They found out the challenges being faced. They came to know that the publishers were scared of the pricing model of Amazon, and that they were looking for ways to increase the prices of e-books and they. They were also ready to make combined efforts to combat the dangers poised to the publishing industry was facing.
Apple and iBook can be scaled down to 70 as it was one of the highest influencers on the e-book industry and Amazon. Most of the people are now focused on reading online books, and they suggest to do it through Apple and iBook. No one majorly focuses on e-book created by Amazon. It was good initiative for Apple but a bad move for Amazon and highly influenced its performance.
The New Business Model
Apple, then proposed to eliminate the wholesale business model and replace it with a new model. In the new model proposed by Apple, the retailer gets an amount as commission for dispensing the e-books.in the model proposed by Apple, eachEach publisher could then fix the e-book price and could get 70%of the profit from each e-book’s sale. Apple decided to keep the remaining 30% as commission.
Also, Apple allegedly tried to divide the content of the digital market in such a way thatto drift the audio video content to drift towards Apple and e-books to Amazon. Apple reached out to the publishers with the proposal of a new business model that would allow publishers to set the prices, instead of retailers doing so. And Apple would thenplay the role of an “agent” and will claim a 30% commission.

Also there was a deal among, Apple and the publishers that they will made a deal not tobe selling their product at cheap rates as compared to those offered byproducts cheaper than Amazon.  So, with the launch of iPad, Amazon was hit with a serious blow and was left with the only option of raising prices. Otherwise it would become difficult for Amazon to sell the e-book best sellers. Initially, Amazon tried to resist the idea of increasing the price but soon it had to surrender to the situation and accept the new business model.
The scheme of Apple worked well for them because the new business model that suggested fixing the prices, proved to be very successful. There was an increase ofThe average boook prices increases by $5 per unit in the price..  The following law suit claims that millions of e-books were sold at prices as high as $12.99 or $14.99 due to a deal between appleApple and the publishers. They were able to take millions of dollars “extra” from the customers.
The most considerable matter in this issue was the most favored nation status, which the publishers decided to give to Apple in their original deals. This status meant that Apple will be able to offer prices as low as other retailers. This statusIt also ensured that other retailer like Amazon was not able to offer lower prices.
The new business model of Apple can be scaled as 60 as it also influenced the company and whole industry by innovating a new model for dispensing the e-books. It allowed the customers to get discounts for their e-books that influenced the productivity of Amazon.
The Most Favored Nation Status
Although the publishers did not accept the allegations made against them yet, three of them greedagreed to make a deal with the government and pay over $50 million as compensation to the e-book customers in the U.S.  The director of the Department of Justice’s antitrust division claimed that the deal is an effort to reverse the damage caused by the conspiracy done bycollision of Apple and the reinstatement of the price competition will be pleasing for the customers assince they will be able to get e-books at lower prices. The deal resulted in the culmination of the “most favored nation” agreement among Apple and the publishers. The end of the deal would allow the retailers to offer e-books at reduced prices.
Apple and two other publishers refused to doaccept the settlement. They did not admit the allegations made against them. Rather theyplead guilty and announced that they will resist.fight the agreement.  The Department of Justice also, however, decided to carry on with the law suit strongly. They termed itIt called the case as a case of gross anticompetitive behavior. The antitrust suit was filed against Apple by the Department of Justice,and33 US states and territories in April 2012. The Department of Justice did not ask for money damages. But there was a class-action lawsuit against Apple and the remaining two publishers. The purpose of the lawsuit was to deprive Apple and the publishers of all the revenue generated due to the allegedly conspired deal among them.
The most favored nation status can be scaled as 40 because the influence level is low. The publishers didn’t accept the allegations that were made against them. The damage was already done, so it did not further increased but continued as it was before. This factor can be considered as one of the reason to scaling it as 40.
U.S Supreme Court

The US supreme court on refused to hear Apple’s challenge to an appellate court decision.appeal, and Apple was found guilty of playing a central role in making a conspiracy with five other leading publishers. The court ordered Apple to pay $450m as part of a settlement. An Apple spokesperson claimed that Apple was not part of any deal of fixinginvolved in adjusting e-books prices, and theythe company termed the court decision as “disappointing”..” Apple claimed that the court’s decision shows that they have failed to determine the novelty of the idea introduced by Apple and the variety of options offered to the customers.
             The US Supreme Court can be considered as 65 in the scaling of influence, as its decision had a positive influence on the e-book industry. Its decision to pay $450 as a part of the settlement influenced the productivity of the other party.
The US Justice Department
            The head of the US Justice Department’s antitrust division claimed, on the other hand, that Apple has deliberately made a deal with the publishers to raise the prices and termed the agreement between Apple and the publishers as a proof of “cynical misconduct” on the part of the publishers as well as Apple.
Apple did not accept the allegations and showed determination to fight against the lawsuit, claiming that they the company did not do anything wrong. According to Apple, the eBooks stores launched by Apple have proved to be beneficial, frombeneficial both for the expert authors toand the new and aspiring writers. Apple also announced that theyit will not pay the settlement amount if they areit is acquitted from the appeal court.
The U.S justice department can be scaled 75 as it played a great role in making an agreement between Apple and other publishers. It had a highly positive influence on the publishers and their productivity as it helped the publishers to return to the normal prices.
Apple Fighting Back
The amount of $400m, which has to be paid by Apple was barely 1% of the $37bn (£22bn)), which Apple earned in 2014. SoTherefore, the lawyers of the plaintiffs were hoping that the amount got from Apple will be double the damage caused to the customers.
Apple fighting back can be considered and scaled as 55 as it does not have a major influence on the publishers. The cost paid by the company caused damaged to the customers, and Apple lost its customer loyalty. Other publishers was not highly influenced by Apple fighting back.
Apple Faces the Trial
        A trial started where Apple appeared in the court facing the allegations made by the US departmentDepartment of justiceJustice for being involved into a conspiracy with five major publishers to increase the price of e-books. Initially the company was not facing any danger of being imposed with a apart from the fine. The US departmentDepartment of justiceJustice wanted to ensure that the involved companies and the publishers do not involveengage into similar practices in the future. Three of the publishers agreed to pay a settlement amount, while Apple decided to face the trial.
During the trial, some critical evidence was presented before the court. There was an email in whichIn one of the emails, Apple’s CEO was telling the head of News Group owned by Harper Collins about the deal the companyy made with the publishers. The email content verified that Apple had told the publishers to go foraccept a new business strategy that will cost the customers of the e-books an increased price for the products.extra money.  Steve Jobs also stated in the email that Apple would get a 30% commission out of this deal.
The Cchief Eexecutive Officer Tim Cook said that Apple had decided to not go for any settlement rather they would prefer to fight the case. The company claimed that they it were was not involved in any illegal practices. The suit originally accused Apple of trying to put a stop to ever increasing dominance of Amazon to the e-books market.  Apple claimed that there it was no plotting against anyone, and it was an autonomous decision taken of the companyby Apple. However, the charges against Apple said that two of the publishers encouraged Apple to use the new strategy of introducing new retail price.
District judge Denise Cote, who was hearing the case without a jury, emphasized that the company should settle and pay the amount.  She claimed that during the trial, some facts will be presented that will prove Apple’s central role in plotting the conspiracy that resulted in increase of the prices of the e-books. She also said that Apple would have to face serious damages if found involved in the conspiracy. The publishers Penguin Group, Harper Collins, Simon & Schuster, and Hachette and Macmillan had already settled to pay a total of $164m (£107m) and agreed to lift the ban imposed by them on offering the discounted prices for the e-books.
Apple Loses the Case
Three years after a court convicted apple of illegally increasing prices of the e-books, customers started to get their money back, which they had lost due while to buying overpriced e-books. Booksellers were instructed to pay return the moneyback to the customersbuy crediting their accounts. Although Apple denied accepting all the charges, still the company settled to pay return the moneythe amount.
In the Apple’s settlementagreed by Apple, the company y were was supposed to return the money it got received by selling the e-books of the publishers fromApril 1st, 2010 to May 21st, 2012. The Apple paid amount of $6.93 was for each decided to be paid for a New York Times bestseller and $1.57 for all other books. This was twice the amount actually overpaid by the customers.
The E-book Customers
The case, which was started in 2012 is brought an end to the case against Apple’s manipulations. Apple was charged with the accusations of being a central player of a conspiracy. Where Tthree publishers settled with the government, Apple but decided to fight the accusations. While some of the publishers gave up and decided to settle. Apple took the case to court. In 2013, however, Apple was unable to win lost the case. Apple went for appeal to Supreme Court and lost the case there too. Losing the case meant that the company had to pay the settled amount. The amount included  of $400 million payable to the customers and $50 million for the litigation fee
.  The settlement is a huge win for Amazon as well. Amazon took advantage by making the deal public. The company termed this settlement as a huge triumph for the Kindle users who would be able to read e-books at amazingly low cost.

Work Cited
United States v. Apple Inc., 791 F.3d 290 (2d Cir. 2015. Accessed ) Retrieved on Sept. ember 25, 2019
Apple is oOn the Hook for the $450m Settlement after Supreme Court Rejects Apple's eBook Conspiracy Appeal.The Digital Reader,https://the-digital-reader.com/2016/03/07/apple-hook-450m-settlement-supreme-court-rejects-apples-ebook-conspiracy-appeal/. Retrieved Accessed on Sept. ember 25, 2019.
Diane Bartz, PoornimaGupta. BUSINESS U.S. Sues Apple, Publishers in E-Book Price Scheme.” Reuters,NEWSAPRIL 11, 2012 / 5:10 AM / 7 YEARS AGORetrieved on September 25, 2019. Fromhttps://www.reuters.com/article/us-apple-ebooks/u-s-sues-apple-publishers-in-e-book-price-scheme-idUSBRE8391JW20120411https://www.reuters.com/article/us-apple-ebooks/u-s-sues-apple-publishers-in-e-book-price-scheme-idUSBRE8391JW20120411. Accessed Sept. 25, 2019.
Lyle Denniston,. “Apple Loses Case on Its E-Book Selling Tactics.Scotusblog, Posted Mon, March 7th, 2016, Retrieved on September 25, 2019. https://www.scotusblog.com/2016/03/apple-loses-case-on-its-e-book-selling-tactics/https://www.scotusblog.com/2016/03/apple-loses-case-on-its-e-book-selling-tactics/. Accessed Sept. 25, 2019.


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