Kindle Customers Get Notice of Apple Ebook Settlement From Amazon

Posted on September 10, 2014

Kindle customers received their court-mandated notice from Amazon.com today which explains the settlement between Apple, the Department of Justice and the states' attorneys general in the ebook price fixing case.

Judge Denise Cote ordered Amazon to send out the notices by September 15, so the fact that the notices came one day after Apple announced the new iPhone 6 and the new Apple watch is just a coincidence.

Under the terms of the settlement Apple has to shell out $400 million to consumers if it wins on appeal. If it wins part and loses part of the appeal and the case is kicked back down to the lower court, then Apple pays $50 million. If Apple wins on appeal, it pays nothing.

Judge Cote has given preliminary approval to the settlement the parties reached, but she's not thrilled that consumers get so much less compensation if the case is remanded back to her court. She also doesn't like the fact that Apple isn't paying interest on the money while the lengthy appeals process plays out.

The hearing to finalize the settlement is set for November 21, 2014. Amazon ebook buyers don't need to do anything unless they have taken leave of their senses, wish to opt out of the settlement and sue Apple themselves. When the settlement funds arrive, buyers can use the money to buy ebooks from Amazon, or anything else it sells. The last settlement could only be used to buy books.