The Texas economy is one of the most robust in the world. Wildly profitable companies and ingenious entrepreneurs call this state home, and what happens here influences businesses around the nation. Here’s a slice of the profits, losses, big deals, and backroom decisions happening across Texas this week.
iPad it Up to Here With You
Texas is one of fifteen states suing Apple and several major book publishers for conspiring to raise the price of e-books, the Houston Chronicle reported this week. The lawsuit accuses the group of increasing the average cost of e-books by $2 to $3 “virtually overnight,” preventing Amazon from offering them at the lower rate of $9.99. The online retailer’s discounted price had made Apple less competitive.
According to Attorney General Greg Abbott, Apple began colluding with publishers in 2009 to time the price increase with the launch of the iPad the following year. Texas and Connecticut have reached settlement agreements with two of the publishers, who will provide $52 million in restitution to consumers.
The Bottom Line: Amazon, which was portrayed as a victim in the antitrust suit, could soon have its revenge: the New York Times reports the company is already