6 Reasons Why Apple’s E-Book Defense Failed


Soon after U.S. District Judge Denise Cote issued a ruling that found Apple (NASDAQ:AAPL) guilty of violating antitrust laws in the e-book business, the Cupertino-based company announced its next move. “Apple did not conspire to fix e-book pricing and we will continue to fight against these false accusations…We’ve done nothing wrong and we will appeal the judge’s decision,” Apple spokesperson Tom Neumayr told The Verge.

According to legal experts cited by the Washington Post, Apple’s appeal could eventually reach the Supreme Court. Judge Cote outlines and refutes the “six principal arguments” that Apple used in its defense in her ruling. Fortune’s Philip Elmer-DeWitt notes Apple’s success on appeal may depend on how well it will be able to respond to the judge’s teardown of Apple’s six key defenses.

1. Monsanto Defense

First, Apple relied heavily on a previous Supreme Court decision involving Monsanto (NYSE:MON) that found that if “a defendant had a legitimate, independent reason for its actions” besides ambiguous involvement in a conspiracy, “then no fact-finder may infer that it engaged in a conspiracy.” Cote dismissed this argument by noting that the “Plaintiffs have shown by a preponderance of the evidence that Apple violated the antitrust laws.”