April 12, 2012
Nobody wins in court, especially corporations being sued by the Department of Justice. From the days of Teddy Roosevelt smashing the monopoly of Big Oil, the government has been shattering corporations with too much market share for more than a hundred years.
That track record is why the DOJ accusing Apple (AAPL) and six different publishing houses with colluding to inflate textbook prices. These actions resulted in “consumers paying millions of dollars more for some of the most popular titles” in the words of Attorney General Eric Holder.
According repeat Breakout guest Sean Udall, author of Minyanville’s TechStrat Report, what Apple investors need to fear is less a fight over textbooks than an government-sponsored attack on iTunes.