Business

Apple parries Amazon ‘Jedi’ tactics

Amazon played the publishing industry for a fool.

That’s part of Apple’s defense against an antitrust lawsuit brought by the Justice Department that depicts it as the “ringmaster” of a scheme to raise the price of e-books.

The suit argues that Apple forced Amazon into a new pricing model that pushed up the cost of digital books for consumers.

Apple counters that its rival is hardly a victim, but rather a manipulator that bragged about playing “Jedi mind tricks” on the publishing industry so that it, too, could adopt the so-called “agency” pricing system.

Previously, Amazon bought e-books from publishers and set the price at $9.99.

When Apple entered the e-book business, it allowed publishers to set the prices and pay the company a 30 percent cut.

Amazon publicly complained that it was forced to shift from its wholesale model to the agency type under pressure from Apple’s deals with publishers.

In response, Apple said Amazon was in parallel discussions with publishers at the same time Apple was negotiating its agreements.

Apple cites an e-mail from an Amazon executive that appears to congratulate the Seattle-based company on its tactics.

“Hysterical isn’t it? Jedi mind tricks here in Seattle,” Lisa Porco, a Kindle executive, wrote in response to a message from Madeline McIntosh, a former Kindle executive.

“The [case] is based on fictions and incomplete quotations,” said Apple lawyer Orin Snyder.

Amazon wouldn’t comment on the response. A trial date is set for June 3.