• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Exclusive

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

Steve Jobs as J.D. Rockefeller

By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
June 2, 2013, 5:30 AM ET

Bad Photoshop job: PED

FORTUNE — The first federal antitrust trial in almost a decade — U.S.A. v. Apple Inc. et al. —  is scheduled to begin Monday in a Manhattan courthouse.

The et al. in the title are five book publishers accused of conspiring in late 2009 and early 2010 to raise the prices of e-books.

The publishers — Penguin, HarperCollins, Simon & Schuster, Macmillan and Hachette Book Group — have already settled with the Department of Justice, leaving Apple (AAPL) as the sole defendant.

Asked about the e-book case last week, Tim Cook called it “bizarre.” And to many observers it must seem that way.

We usually think of antitrust violations being committed by monopolies — Microsoft (MSFT), say, with its 90% control of the PC operating system market.

But at the time of the alleged conspiracy, it was Amazon (AMZN), not Apple, that controlled 90% of the e-book market.

Moreover, even if the book publishers did agree among themselves to fix e-book prices — a “horizontal agreement” that is, by definition, a violation of the Sherman antitrust act — Apple in this scenario was a bookseller, not a publisher. It had a vertical, not horizontal, relationship with the market.

So the DOJ’s case against the company rests on the allegation that Apple was the “ringmaster” at the center of the publishers’ conspiracy.

The “ringmaster” theory is key to the government’s argument. Without it, the case against Apple collapses.

The language comes from a 1998 case in which the FTC proved that Toys “R” Us was the ringmaster that convinced 10 major toy manufacturers to boycott warehouse clubs like Costco.

But the theory, according to David Balto, the FTC’s policy director during the Toys “R” Us trial, dates back to 1879. That’s when Pennsylvania indicted John D. Rockefeller on charges that he monopolized the oil trade by persuading a cartel of railroads to withhold shipments from a would-be competitor. Rockefeller didn’t own a railroad, but it was he who orchestrated the conspiracy.

So the question is: Was Steve Jobs the J.D. Rockefeller of the e-books cartel?


Cue and Jobs. Photo: EU.

The DOJ says he was. They quote extensive e-mail traffic between Jobs and his point man, Eddy Cue, exchanges between Jobs and the CEO of Harper Collins, and a particularly damning quote attributed to Jobs in Walter Isaacson’s biography:

“We told the publishers: ‘We’ll go to the agency model, where you set the price, and we get our 30 percent, and yes, the customer pays a little more, but that’s what you want anyway’.

“They went to Amazon and said, ‘You’re going to sign an agency contract or we’re not going to give you the books.’ “

Balto, for one, thinks the government has an open-and-shut case. And U.S. District Judge Denise Cote, who will decide it without a jury, seems to agree. (See Judge says Apple is likely to lose.)

Apple’s lawyers, not surprisingly, disagree. They say the publishers — convinced that Amazon, with its below-cost $9.99 pricing, was lowering the perceived value of their most popular titles — had come up with the agency model on their own, long before Jobs and Cue showed up. Apple went along with the deal, they claim, for its own business reasons.

Apple calls the DOJ’s version of events a “fiction,” a theme Tim Cook echoed at an industry conference last week.

“We refuse to sign a settlement that says we did something we didn’t do,” he said. “So we’re going to fight it.”

Does Apple have a persuasive defense? We’ll find out. The trial is scheduled to begin Monday at 9:30 a.m. ET and is expected to last three weeks.

Meanwhile, you can form your own opinion. The two sides have laid out their competing narratives in pre-trial briefs:

  • Plaintiff’s Proposed Conclusions of Law
  • Apple Inc’s Pre-Trial Memorandum of Law
About the Author
By Philip Elmer-DeWitt
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Santora gestures towards himself
Future of WorkGen Z
WeWork and Upwork CEOs confirm the Gen Z hiring nightmare is real—but it’s nothing new
By Jacqueline MunisMay 19, 2026
23 minutes ago
U.S. President Donald Trump speaking at a podium flanked by signs that say "Winning the AI Race."
NewslettersEye on AI
The times they are a-changin’: Washington suddenly warms to regulating AI
By Jeremy KahnMay 19, 2026
28 minutes ago
CNN analyst and ‘The Morning Show’ producer says Stephen Colbert is a role model for his ‘positive’ outlook on his show ending
Arts & EntertainmentFortune Workplace Innovation
CNN analyst and ‘The Morning Show’ producer says Stephen Colbert is a role model for his ‘positive’ outlook on his show ending
By Emma BurleighMay 19, 2026
51 minutes ago
traffic
Future of WorkJobs
Goldman Sachs: The U.S. labor market is healthier now than when ChatGPT launched. Yes, really
By Nick LichtenbergMay 19, 2026
57 minutes ago
Andrej Karpathy Director of AI Tesla a keynote speaker at the Train AI conference at Pier 27 in San Francisco, Ca. on Thurs. May 10, 2018, (Photo By Michael Macor/The San Francisco Chronicle via Getty Images)
AIAnthropic
Andrej Karpathy, OpenAI founding member and inventor of ‘vibe coding,’ defects to Anthropic
By Eva RoytburgMay 19, 2026
1 hour ago
Customer paying for order of cheese in grocery shop.
Personal Financeshopping
Buy now, pay later is the new financial lifeline for lower-income Americans, as consumer loans pile up to $19 trillion
By Tristan BoveMay 19, 2026
1 hour ago

Most Popular

While Trump insisted the Iran war would end ‘soon,’ an account in his name was buying millions in oil, defense and gold
Economy
While Trump insisted the Iran war would end ‘soon,’ an account in his name was buying millions in oil, defense and gold
By Eva RoytburgMay 18, 2026
1 day ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
7 days ago
Current price of oil as of May 18, 2026
Personal Finance
Current price of oil as of May 18, 2026
By Joseph HostetlerMay 18, 2026
1 day ago
Current price of silver as of Monday, May 18, 2026
Personal Finance
Current price of silver as of Monday, May 18, 2026
By Joseph HostetlerMay 18, 2026
1 day ago
EXCLUSIVE: An hour in the Oval Office with the CEO-in-Chief, President Trump
Politics
EXCLUSIVE: An hour in the Oval Office with the CEO-in-Chief, President Trump
By Alyson ShontellMay 18, 2026
1 day ago
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
Travel & Leisure
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
By Rio Yamat and The Associated PressMay 18, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.