In what appears to be a change of tune, a United States District Court Judge has given Apple preliminary approval for its $450 million settlement with consumers over e-book price-fixing on its iBookstore.
The approval came only a week after Judge Denise Cote had put forward concerns over the settlement, arguing that a number of provisions would reduce the overall damages paid to affected consumers.
But she appears to have withdrawn that previous criticism as she reportedly has agreed to those terms and provisions in the settlement, which will see $50 million go to the team of lawyers who fought for consumers.
The settlement stems from Cote's 2013 ruling that the company was guilty of dealing with and working together with major book publishers to set the price of items in the iBookstore. It was judged as an antitrust case and was argued by the Department of Justice. Although Apple is appealing that decision, an injuction has been established that bars Apple from making similar agreements with other content providers.
Cote did say she was not in favor of a number of terms that could see Apple only pay some $70 million if the appeals court overturns her initial verdict. And if Apple is successful in its appeal, it will not be forced to pay a single dollar.
"The proposed settlement agreement is within the range of those that may be approved as fair and reasonable, such that notice to the class is appropriate," Cote said. "Preliminary approval is granted."
Tech Times reported after the initial halt to the settlement that more than 30 states and lawyers had submitted the settlement for Cote's approval. The move aimed for Apple to avoid an Aug. 25 trial for damages requested.
Attorneys general from the states involved initially sought $280 million in damages from Apple's alleged price-fixing scheme, but later tripled the amount to $840 million, according to reports.
The case has been watched closely by media and tech observers as it hits directly on antitrust and price-fixing in the digital world, which could be a litmus test for how regulators, consumers and companies deal with these issues as more and more content goes online and digital.
