Apple's senior executive defends company's e-book pricing policy with publishers

Apple's senior executive Eddy Cue defended the company against the alleged charges of fixing prices with publishers for subsequent price hike and profit to the companies.

Apple was recently accused of pushing publishers to go with 'agency model', which allowed the publishers and not the retailers to decide the price of e-books and Apple would therefore earn 30 percent commission from the sales.

Reportedly the publishers then forced the major e-book market shareholder Amazon to adopt a similar model, which resulted in a price hike of up to 4 dollars for popular titles.

According to Washington Post, there is sufficient evidence which include dozen of email exchanges and more than 100 phone calls exchanged between Cue and publishers.

However, Cue denied having raised prices for the e-books but admitted simultaneously negotiated deals with five major publishers - Penguin, Simon and Schuster, HarperCollins, Hatchette and Macmillan.

According to the report, late Steve Jobs knew about the scheme to fix prices and ask Amazon for price hike and Cue testified that he wanted to launch the e-book store with introduction of the iPad for Jobs.

Cue further defended his company's stand and said that the 'customers got great prices, great selection at a better bookstore', the report added.