• 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?

Day 3 of the Apple e-book trial: Enter Amazon

By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
June 6, 2013, 7:46 AM ET

Amazon’s Grandinetti.

FORTUNE — The lawyers defending Apple (AAPL) in the e-book antitrust case would like nothing better than to make the trial be about Amazon (AMZN), not their client, and on Wednesday they got their chance when Russell Grandinetti took the stand.

In earlier testimony from two publishing executives — Penguin’s David Shanks and Simon & Schuster’s Carolyn Reidy — Grandinetti played the heavy.

As Amazon’s VP for Kindle content, it was he who managed the company’s 80% to 90% share of the e-book market, he who used the publisher’s e-book titles as $9.99 loss leaders to promote Kindle sales, he who “threatened our business” (in Reidy’s words) after they threw in with Apple.

And Grandinetti had the leading role in one of the most dramatic scenes in the e-book story.

On Thursday Jan. 28, 2010, the day after Steve Jobs introduced the iPad, he and Macmillan CEO John Sargent had a tense meeting in Amazon’s Seattle headquarters during which Sargent told Grandinetti that Macmillan wanted to change the terms of their contract from the traditional wholesale model, where Amazon set the prices for e-books, to the agency model that Apple had introduced, where the publishers set the prices.

Grandinetti testified Wednesday that he expressed in no uncertain words how “unpalatable” he found Sargent’s “ultimatum,” and he ended the meeting by escorting Sargent out the building. The next day Grandinetti removed Amazon’s “buy” button from all of Macmillan’s titles — not just e-books, but printed books as well.

Grandinetti eventually “capitulated” (his word) and negotiated agency deals with all five of the publishers the Justice Department has named as co-conspirators with Apple in a scheme to raise the price of e-books.

It was when Grandinetti described those negotiations that the tenor of the trial changed. Apple’s defense team could hardly contain their glee as attorney Howard Heiss, in sometimes combative questioning, got Grandinetti to describe the terms of those contracts.

They were, point by point, the same terms Apple had negotiated — terms the government had described two days earlier as “a deliberate scheme orchestrated by Apple to fix prices” and which were voided last year as part of the publishers’ settlements of the changes against them.

Amazon’s contracts even contained the price-matching, or MFN, provision that was supposed to be the linchpin of Apple’s illegal stratagem.

“We made it very clear to the publishers,” Grandinetti testified, “that we would not sign without price parity.”

If Judge Denise Cote, who will decide the case, took the point that Apple was trying to make — that what it did in negotiating its contracts is what any company would have done to further its business interests — she showed no sign.

Grandinetti’s theory of the case, by the way, is that the publishers, who held a “monopoly” on the sale of their own titles, had a particularly nefarious reason ganging up on Amazon.

“It was our belief,” he testified, “that the reason we were in this situation was that some of the publishers wanted to slow the sale of the Kindle.”

Grandinetti returns to the stand on Thursday.

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.