Macmillan has settled with the Department of Justice in the lawsuit over the agency model for selling digital books. All five major publishers sued by the DOJ have now settled, leaving Apple to battle the government in court.
Macmillan CEO John Sargent wrote a letter explaining why they settled: “Our company is not large enough to risk a worst case judgment … A few weeks ago I got an estimate of the maximum possible damage figure. I cannot share the breathtaking amount with you, but it was much more than the entire equity of our company.”
Antitrust Division chief of staff Jamillia Ferris offered this statement: “As a result of today’s settlement, Macmillan has agreed to immediately allow retailers to lower the prices consumers pay for Macmillan’s e-books.”
Publishers Weekly reported that “Judge Denise Cote quickly approved a $70-million plus settlement” at a hearing.