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Apple and five publishers are being formally investigated by the European Commission over e-book antitrust allegations.
The Commission is investigating whether Apple worked with the five publishers to form a cartel over e-book sales, and whether they engaged in restrictive business practices. The publishers are Hachette Livre, HarperCollins, Penguin, Simon & Schuster, and Verlagsgruppe Georg von Holtzbrinck.
"The Commission has concerns the publishers may have colluded to raise the price of e-books and that Apple may have facilitated this," Commission competition spokeswoman Amelia Torres told ZDNet UK on Tuesday. "We are starting a formal investigation. This does not prejudge the final outcome."
Torres declined to say which concerns the Commission had over Apple’s practices or technology. Apple’s iBooks application is available for Apple devices such as the iPad 2 and the iPhone.
The Commission’s formal investigation proceedings follow a number of surprise inspections carried out by Commission officials in March, according to a Commission statement.
The UK Office of Fair Trading (OFT) shared similar concerns with the European Commission, and was running a parallel probe into Apple over e-books. The OFT closed its investigation before the formal Commission proceedings opened, but may reopen the probe if its concerns are not met by the Commission, an OFT spokeswoman told ZDNet UK on Tuesday.
"We closed the investigation on administrative grounds," said the spokeswoman. "During the course of the investigation, it became clear the Commission is well placed to address matters."
Simon & Schuster shares the same parent company as ZDNet UK: CBS Corp, a US company. HarperCollins is part of Rupert Murdoch’s News Corp, a US corporation. Penguin is part of Pearson Group, of the UK. Hachette Livre is owned by Lagardère Publishing, France. The German company Verlagsgruppe Georg von Holtzbrinck owns UK publisher Macmillan.
Apple has not responded to a request for comment at the time of writing.
Source: ZDNet
Also guess what happens with Steam and the publishers who put their games on Steam? According to the Steamworks FAQ:
3. Who sets the price for my game on Steam?
Pricing is very title specific, and we’ve got a lot of data and experience to help you decide on what the best price is for your title. We’ll work with you to figure out pricing.
So this basically means that the problem EU sees with Apple is that apple "worked with" publishers to set prices. Steam’s Steamworks FAQ says it does the same thing.
Is it time we contact the European Commission once more?
News thanks to rottencat!

Apple has got the message and has provided a graphics update for OS X Snow Leopard which will go some way towards closing the gap between the two platforms.
“When we launched Steam on Mac OS X back in May, there was a lot of buzz about performance, particularly relative to Windows running on the same machine,” says a statement from Steam bosses.
“While we met our goal of making sure all of our customers had an acceptable gaming experience at launch, we have spent a large chunk of effort in the intervening months working with Apple and their GPU vendors to close the performance gap with Windows.”
Steam reckons a combination of changes to its own code and the latest graphics update available from Apple today removes a variety of software bottlenecks, resulting in significant graphics performance enhancements for Mac gamers.
In addition to low-level implementation changes which have improved performance across the board, Apple has also removed some implementation inefficiencies which allow Steam games to improve visual quality, most notably in the area of GPU occlusion queries.
Since the latest update to 10.6.4, Steam has been able to properly implement ‘occlusion query’ which is a GPU-based mechanism which allows OpenGL to draw convincing lighting effects, particularly when a light source is obscured by in-game objects.
“A given light source may be partly or wholly occluded by other geometry in the scene and we use the occlusion query to determine how occluded it is. The percentage of a given light source’s screen area which is actually visible is used to scale the intensity of an additive glow sprite which is drawn over the frame without any z-buffering,” – Steam developer said.
“We have been able to measure performance improvements with the latest software update, but we are anticipating even more speedups if Apple implements the uniform_buffer_object extension and GLSL 1.3 in a future update. With these additional features, we will be able to sidestep this particular CPU bottleneck, allowing us to win back a bunch of CPU time and, ultimately, performance.”
The gaming community is reporting dramatic performance improvements on iMac (Late 2009 and Mid 2010), Mac mini (Early 2009 and Mid 2010), Mac Pro (Early 2009), MacBook (Early 2009 and Mid 2010) and MacBook Pro (15-inch, Mid 2010) and MacBook Pro (17-inch, Mid 2010) models. Older systems are generally already operating at the limits of the hardware, and Valve Software says it’s unlikely that any significant performance improvements can be achieved in the future.
In conclusion, Steam employees said, “We’re very excited about the performance improvements that Apple and the GPU vendors have been able to deliver this summer and we are working with them to further improve performance.”