In the wake of the controversy involving the e-book prices set by Apple and five publishers, a U.S. District Judge has signed off on an out-of-court settlement requiring Apple to pay $450 million.
Judge Denise Cote of Manhattan gave final approval, which stipulates Apple will need to pay $400 million to more than 20 million consumers and another $50 million to the lawyers involved in the case.
With the settlement approved, is Apple's legal battle finally over?
Apple can continue to appeal a ruling Cote handed down in 2013, which pointed out that the company violated antitrust provisions when it colluded with publishers to disrupt business for Amazon.com and increase e-book prices more than what was necessary.
The Tech Times reported in June that the ruling was also partly based on an email exchange between Steve Jobs and James Murdoch, HarperCollins chief, where "conspiratorial knowledge and intent" was evident.
Apple, however, has always been adamant that it has done nothing wrong.
"We did nothing wrong and we believe a fair assessment of the facts will show it. As we wait for the court to hear our appeal, we have agreed to a settlement which is contingent on the outcome of the appeal," said the company.
Included in the initial ruling was an order for Apple to modify agreements with publishers and to hire a compliance monitor externally for two years. The company argued against hiring a monitor but the U.S. Justice Department said it was essential in ensuring that Apple does not violate antitrust laws again.
If Apple is successful with repealing the ruling, it doesn't have to pay anything to anyone. Otherwise, it will shell out $450 million as agreed on the settlement. If the appeals court returns the case back to Cote for a new trial, Apple will still have to pay, but the amount is drastically cut to $50 million for consumers while the lawyers will get $20 million.
Originally, attorneys general from 33 territories and states and class-action lawyers were lobbying for $840 million in damages. The case, however, didn't go into trial because Apple instead opted for a settlement.
Aside from the $400 million that Apple has agreed to pay, $166 million had already been paid by Macmillan, Simon & Schuster Inc, Penguin Group Inc, HarperCollins Publishers LLC, and Hachette Book Group Inc, the five publishers also named in the lawsuit.
Apple has not made an official comment regarding the approval of the settlement.
An appeal has been set for Dec 15.