Cecilia Kang
Washington Post
September 6, 2013

A federal judge on Friday ordered Apple to alter its contracts with e-books publishers to ensure price competition, in a closely watched decision that could ripple across Internet commerce for videos, music and other media.

U.S. District Court Judge Denise Cote issued a permanent injunction against Apple, forcing the company to alter contracts that contain “most favored nation” clauses, or preferred treatment that give the iPad maker the ability to control prices offered to competitors.

The judge barred Apple for five years from entering any new agreements with such favorable terms that would prevent retail ebooks prices from dropping. She also ordered an outside auditor to monitor the company’s compliance with her order for two years.

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