The Justice Department filed suit Wednesday against Apple and a band of publishing houses over alleged price fixing prices of e-books for the iPad, a knowledgeable source confirmed to POLITICO.

The antitrust lawsuit was filed in federal district court in New York alleging Apple and five publishers — Simon & Schuster, HarperCollins Publishers, Hachette Book Group, Pearson and Macmillan — colluded on pricing for digital books as Apple tried to break into a market dominated by Amazon.

Several of the publishers have been in settlement talks with the government and could reach accords as early as Wednesday. But Apple and Macmillan haven’t taken part in settlement talks with DOJ, sources said.

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