Apple Ordered to Stagger E-Book Contract Negotiations, Refrain From 'Most Favored Nation' Clauses - MacRumors
Skip to Content

Apple Ordered to Stagger E-Book Contract Negotiations, Refrain From 'Most Favored Nation' Clauses

iBooks.pngJudge Denise Cote today issued her penalty ruling in the e-book pricing suit against Apple, ruling that Apple must stagger its contract negotiations with major publishers to prevent collusion and avoid entering into "most favored nation" (MFN) agreements with any publisher for five years, according to GigaOM. The MFN clauses in Apple's contracts with publishers prevented any other e-book retailer from undercutting Apple, giving Apple the right to at least match the best pricing offered by other retailers.

Judge Cote’s injunction forbids Apple from enforcing most-favored-nation clauses in any ebook publishing contracts for five years, and also forbids the company from entering into any book publishing contracts that contain them for five years. Apple had wanted this provision to be less broad, relating only to MFN clauses with the five publishers in the case who have already settled. Instead, it applies to all publishers.

Judge Cote defined the order in which Apple will be permitted to renegotiate contracts with publishers, beginning with Hachette 24 months after the judgment's effective date and staggering negotiations every six months thereafter for the five publishers involved in the case.

Apple is also required to hire an external compliance monitor to ensure that the company is complying with antitrust requirements.

In a win for Apple, Cote's ruling does not require the company to allow the return of direct store links from competing e-book distributors in their App Store apps, something the U.S. Department of Justice had requested in its proposed penalties.

Apple continues to deny that it engaged in price fixing, and is pursuing an appeal of the guilty verdict.

Popular Stories

M5 MacBook Pro

RIP, MacBook Ultra

Monday October 19, 2026 9:37 am PDT by
Apple today sent out invites for an experience in Los Angeles on Wednesday, October 28, and the "Pro and tell" tagline on the invitation likely means that the rumored MacBook models with touch-enabled OLED displays will stick with MacBook Pro branding instead of the once-rumored "MacBook Ultra" name. The long-rumored "iPhone Ultra" ended up being named iPhone Duo, so speculation that Apple...
iPhone Duo Trio

Here's What Apple's Apps Look Like on the iPhone Duo

Tuesday October 20, 2026 11:12 am PDT by
With just three days to go until the iPhone Duo is released, Apple is getting ready for the launch. Behind the scenes, the App Store now has screenshots of Apple's built-in apps running on the Duo. We've seen some apps in marketing materials, but images of the ones we haven't seen give us an idea of what it will be like using the iPhone Duo day to day. Many apps are shown in landscape...
apple pro tell logo

Apple Announcing New Products Next Week: 'Pro and Tell'

Monday October 19, 2026 9:05 am PDT by
Apple's Greg Joswiak today hinted at new product announcements coming next week, sharing a social media post that says "Can't wait to pro and tell next week." Rumors suggest Apple is planning to debut the new MacBook Pro with an OLED touchscreen display, an M6 entry-level MacBook Pro, an M6 iMac, an iPad mini with an OLED display. Can't wait to pro and tell next week....

Top Rated Comments

DipDog3 Avatar
171 months ago
Actually these punishments are not too bad. I think Apple should just accept these and move on.
Score: 15 Votes (Like | Disagree)
171 months ago
In one sense, they got the book thrown at them
Score: 13 Votes (Like | Disagree)
Rafagon Avatar
171 months ago
DOJ you have bigger problems than Apple

DOJ sure seems to have a lot of free time on their hands... worrying about ebook sales and pricing...
Score: 12 Votes (Like | Disagree)
171 months ago
Government is overreaching here, by telling a corporation what they can and cannot do.

If the law is clear, Apple has to abide by it and if they don't they should get fined every time they break it until they do.

Anything else is not the DOJ's or a judges business.
Score: 8 Votes (Like | Disagree)
PracticalMac Avatar
171 months ago
Win for the most dominant eBook retailer Amazon?
Score: 7 Votes (Like | Disagree)
171 months ago
DOJ sure seems to have a lot of free time on their hands... worrying about ebook sales and pricing...

I know. When you consider the tons of other significantly worse behavior that goes on in American corporations completely unchecked, its actually pretty pathetic they go full-blast on a stupid little e-book case but don't give that same treatment to the scum oligopolists like big oil companies, or the telephone carriers who almost certainly engage in price fixing as well AND have an oligopoly. However, allow publishers to raise ebook prices 3 dollars, and you'll get swarmed by Uncle Sam.

America the Beautiful.
Score: 6 Votes (Like | Disagree)
Latest Stories
Tesla App Gains iPad and iPhone Duo Support
Tesla App Gains iPad and iPhone Duo Support
2 hours ago
Apple Reportedly Boosts iPhone Duo Orders by 44%
Apple Reportedly Boosts iPhone Duo Orders by 44%
2 hours ago
Fortnite Returning to Australian App Store After Court Ruling
Fortnite Returning to Australian App Store After Court Ruling
3 hours ago
Apple Ordered to Open iPhone to Rival App Stores in Australia
Apple Ordered to Open iPhone to Rival App Stores in Australia
3 hours ago
Apple Suppliers Face Hurdles Cutting Circuit Board Emissions
Apple Suppliers Face Hurdles Cutting Circuit Board Emissions
3 hours ago
Things Updated for iPhone Duo With Adaptive Layout
Things Updated for iPhone Duo With Adaptive Layout
4 hours ago
Simplicity and Siri AI Are HomeView's Killer Features, Apple Says
Simplicity and Siri AI Are HomeView's Killer Features, Apple Says
4 hours ago
iPhone Duo Reviewers Really Miss Face ID
iPhone Duo Reviewers Really Miss Face ID
9 hours ago
Does the iPhone Duo Run Hot? Here's What Reviews Found
Does the iPhone Duo Run Hot? Here's What Reviews Found
11 hours ago
Apple Music's New Look is Now Live on Apple's Website
Apple Music's New Look is Now Live on Apple's Website
11 hours ago
Anthropic Launches Claude Duet, a Proactive AI Agent
Anthropic Launches Claude Duet, a Proactive AI Agent
12 hours ago
What 32,000 Folds Did to the iPhone Duo's Hinge
What 32,000 Folds Did to the iPhone Duo's Hinge
13 hours ago
iPhone Duo's Hidden FaceTime Camera Takes 'Trash' Photos
iPhone Duo's Hidden FaceTime Camera Takes 'Trash' Photos
14 hours ago
iPhone Duo Has 'Edge Light' Feature That Debuted on Macs Last Year
iPhone Duo Has 'Edge Light' Feature That Debuted on Macs Last Year
15 hours ago
Apple Support App Updated for iPhone Duo's Larger Display
Apple Support App Updated for iPhone Duo's Larger Display
15 hours ago
Amazon Sweetens the Deal on Entry-Level 16-Inch MacBook Pro With $570 Off
Amazon Sweetens the Deal on Entry-Level 16-Inch MacBook Pro With $570 Off
15 hours ago
iPhone Duo Tips Over on MagSafe Stands When Unfolded
iPhone Duo Tips Over on MagSafe Stands When Unfolded
15 hours ago
Apple Music's New Look Officially Announced
Apple Music's New Look Officially Announced
17 hours ago
iPhone Duo Supports Apple Pencil Starting With iOS 27.2
iPhone Duo Supports Apple Pencil Starting With iOS 27.2
17 hours ago
iPhone Duo Accessories Roundup: Cases and Screen Protectors From OtterBox, ZAGG, and More
iPhone Duo Accessories Roundup: Cases and Screen Protectors From OtterBox, ZAGG, and More
18 hours ago
Apple Stores Will Have 'Limited' Availability of iPhone Duo for Walk-In Customers
Apple Stores Will Have 'Limited' Availability of iPhone Duo for Walk-In Customers
19 hours ago
iPhone Duo Reviews Explain Why Device is Both 'Fun' and 'Frustrating'
iPhone Duo Reviews Explain Why Device is Both 'Fun' and 'Frustrating'
19 hours ago
Apple Says 'Reachability' Feature Coming to iPhone Duo Later This Year
Apple Says 'Reachability' Feature Coming to iPhone Duo Later This Year
20 hours ago
Loop Capital Cuts Apple Rating Over iPhone Sales Outlook
Loop Capital Cuts Apple Rating Over iPhone Sales Outlook
1 day ago
Apple Stores in Bordeaux and Lille Looted During French Protests
Apple Stores in Bordeaux and Lille Looted During French Protests
1 day ago
Bluesound Adds Native Apple Music Support
Bluesound Adds Native Apple Music Support
1 day ago
Apple CEO John Ternus Explains What Makes Good Product Design
Apple CEO John Ternus Explains What Makes Good Product Design
1 day ago
UK Proposes New Ways to Help Apple Pay Rivals
UK Proposes New Ways to Help Apple Pay Rivals
1 day ago
WhatsApp Developing In-App Browser for All Chat Links on iPhone
WhatsApp Developing In-App Browser for All Chat Links on iPhone
1 day ago
Apple's App Store Chief Explains Its Push for Premium Games
Apple's App Store Chief Explains Its Push for Premium Games
1 day ago