US blames Apple for driving up e-book prices

A US government lawyer has accused Apple Inc. Of teaming with publishers in 2010 to drive up the prices of electronic books.
The Justice Department attorney, Lawrence Buterman, opened a New York trial by telling a judge today that Apple's scheme cost US consumers hundreds of millions of dollars. He says a dramatic price increase was encouraged by Apple's late founder, Steve Jobs. Buterman said the conspiracy was meant to end Amazon.Com's USD 9.99 pricing scheme for e-books.
The nonjury trial is expected to last several weeks. Lawyers for Cupertino, California-based Apple say the allegations are based on "faulty assumptions and unfounded conclusions."

Five publishers named in the lawsuit have settled. The judge had urged Apple to do the same.