Apple prepares to fight e-book conspiracy claim

Apple goes on the defensive today with the start of a trial in which US officials allege the company was the "ringmaster" of a conspiracy to raise prices of electronic books.

In the trial set to open in US District Court in New York, the technology icon is going solo in its fight against the US Justice Department after five large publishers named in the lawsuit settled the charges.

US antitrust watchdogs allege Apple orchestrated a collusive shakeup of the e-book business in early 2010 that resulted in higher prices. Apple is expected to argue its actions shook up a sector that had been dominated by Amazon, and boosted competition.

Early signals suggest the three-week, non-jury trial could be a tough ride for Apple, which has been struggling amid a dearth of new products and recent allegations that it avoids billions in taxes.

Five publishers originally named as defendants reached settlements in which they agreed to terminate their e-book agreements with Apple.

The largest settlement was with Penguin for US$75 million.