NEW YORK (Reuters) - Apple Inc conspired with publishers to raise the price of e-books in a scheme costing consumers "hundreds of millions of dollars," a U.S. government lawyer said on Monday.

A three-week trial got under way before a federal judge in New York in a case pitting the Justice Department against the popular iPad and iPhone maker that could shine a light on the secretive Silicon Valley giant's business practices.

"Apple told publishers that Apple - and only Apple - could get prices up in their industry," Lawrence Buterman, a lawyer at the Justice Department, said during opening arguments.

The trial came more than a year after the Department sued Apple and five of the largest U.S. publishing houses, accusing them of working together illegally to increase e-book prices and undo Amazon.com Inc's market control.

Orin Snyder, an attorney for Apple, described the case as "bizarre." Apple acted in its own business interests in negotiating deals with publishers in the run up to the debut of its iPad in January 2010, he said.

"What the government wants to do is reverse engineer a conspiracy from a market effect," Snyder said.

Apple is going to trial alone after the five publishers agreed to eliminate prohibitions on wholesale discounts and to pay a collective $164 million to benefit consumers.

The five publishers were Pearson Plc's Penguin Group, News Corp's HarperCollins Publishers Inc, CBS Corp's Simon & Schuster Inc, Hachette Book Group Inc and MacMillan.

The U.S. government is not seeking damages, but instead an order blocking Apple from engaging in similar conduct. However, if Apple is found liable, it could still face damages in a separate trial by 33 state attorneys general, who would seek civil penalties on behalf of consumers.

'TENTATIVE VIEW'

The non-jury trial is proceeding before U.S. District Judge Denise Cote, who gave a "tentative view" at the last hearing before trial that she thought the Justice Department might win.

"I believe that the government will be able to show at trial direct evidence that Apple knowingly participated in and facilitated a conspiracy to raise prices of e-books," Cote said on May 23.

During opening arguments, Snyder expressed Apple's "concern" about the comment, adding later, "all we want is a fair trial." Cote retorted that she made her comments only after the Justice Department and Apple asked for her view, which was based on hundreds of documents submitted in advance of trial.

"The deck is not stacked against Apple unless the evidence stacks against Apple," Cote said.

The case has its origins in concerns by publishers that had emerged by 2009 about low prices for best-seller and new e-books sold by Amazon, which launched its Kindle e-reader in 2007.

Amazon, which by that time sold up to 90 percent of all e-books, was buying e-books wholesale and then discounting them, selling new and best-selling books for $9.99, sometimes at a loss.

Buterman, the government's lawyer, said publishers became increasingly dissatisfied with those prices, which they considered too low. They tried a number of tactics, increasingly in parallel, to fight Amazon's pricing model.

Those tactics were unsuccessful, though, until Apple entered the market, he said.

Apple acted as a facilitator for the publishers, enabling them to reach agreements that would move their industry to an agency model, in which publishers set the price and Apple took a fixed 30 percent cut, Buterman said.

Buterman cited former Apple chief executive officer Steve Jobs, who died in 2011, telling his biographer that, "we told the publishers, 'We'll go to the agency model, where you set the price, and we get our 30 percent, and yes, the customer pays a little more, but that's what you want anyway.'"

Buterman said, "Overall, average prices of e-books went up, costing consumers millions of dollars."

'MAKES NO SENSE'

Apple's Snyder called the government's story a "fiction" saying many of Job's emails and statements the prosecution will show will be taken out of context.

As for the agency model, Snyder said there was nothing wrong with it. He said both Amazon and Barnes & Noble Inc considered it before Apple did.

"Agency is good and beneficial to consumers and markets," he said.

Moreover, Snyder said data showed that in the wake of Apple's entry into the market, average e-book prices fell instead of increasing. In court papers, Apple said prices fell from $7.97 to $7.34.

The case is United States v. Apple Inc et al, U.S. District Court, Southern District of New York, No. 12-02826.

(Reporting by Nate Raymond; Editing by Eddie Evans and Leslie Gevirtz)

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Seagal is pals with a handful of influential Russian officials, as Michael Weiss at the explained earlier this week. And it sounds like the actor called in a bunch of favors to get the congressmen access to officials they wouldn't have otherwise spoken to — including members of the the Federal Security Service,. The lawmakers were impressed, as evidenced by the story on the trip: 

[Rohrabacher] repeatedly thanked Seagal, who took credit for arranging the congressmen's meeting at the FSB, and said it helped avoid the experience of past foreign trips when all of the meetings had been arranged by the U.S. Embassy.

"You know what we got? We got the State Department controlling all the information that we heard," Rohrabacher said. "You think that's good for democracy? No way!"

Diplomatic missions, apparently, are just that much more fun when led by an action star. Especially when that action star is so friendly with the Russian appointed "president" of Chechnya, Ramzan Kadyrov . And, uh, here he is, dancing for Kadyrov: 

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The ban, which came into force Saturday, prohibits smoking in workplaces, schools, universities and on public transportation. More restrictions will be applied a year later.

Authors of the ban have pointed to the hundreds of thousands of Russians who die of smoking-related illnesses every year. The measure has been approved by both houses of parliament and signed by President Vladimir Putin.

Cigarettes are much cheaper in Russia than in the U.S. and Europe, with the price of a pack starting at about $1. About 40 percent of Russians smoke.

The young striker saved the day for the visitors with a low shot through traffic after some extended pressure from Philadelphia (5-5-5). The late goal extended Toronto's MLS winless streak to 11.

McInerney also scored in second-half stoppage time on April 13 to earn Philadelphia a 1-1 tie with Toronto when the teams met at PPL Park. Toronto (1-7-6) has now lost 11 points in seven games this season due to last-minute goals.

McInerney, named MLS Player of the Month in April and May, came into the game tied for the league lead with nine goals. He also led MLS with five game-winning goals.

Rookie midfielder Jonathan Osorio's goal in the 66th minute had looked like it might be the winner for struggling Toronto FC.

New Zealand substitute Jeremy Brockie made the goal with a fine swerving cross from the right flank. The 20-year-old Osorio, who won his first cap for Canada earlier in the week, flung himself at the ball and scored with a flying header.

It was the third goal of the season for the native of Brampton, Ont., who earned his second start after a fine showing of the bench last week in New England.

Toronto's only win this season was March 9 at Rogers Centre, a 2-1 victory over Sporting Kansas City.

The contest, an ill-tempered affair with plenty of shoving and three yellow cards for each side, was crucial for Toronto with Philadelphia occupying the fifth and last playoff spot in the East. The tie kept the gap between the two at 11 points.

Toronto has next weekend off before travelling to face league doormat D.C. United (1-9-2 ahead of Sunday's match with Chicago).

Dutch striker Danny Koevermans was introduced for Toronto in the 86th minute, returning after more than 10 months out due to knee surgery.

The home side came out with purpose and dominated the first half Saturday. But one shot on goal proved to be a poor return and Toronto went into the locker-room at halftime tied 0-0 and down a man after defender Doneil Henry was sent off for a second yellow as the first half wound down.

Until Osorio's goal, it looked like it might have been an evening of what might have been for Toronto, which was unable to convert its edge in possession into scoring chances.

Toronto entered the game having lost five straight in the league scoring just twice in the process while being blanked three times. The club had won just once in its last 26 MLS games.

And the home side had not won at BMO Field since a 2-1 victory over Colorado on July 18, 2012. Koevermans tore up his knee four days earlier in a loss in New England. Toronto's league record in his absence was 2-17-8.

Philadelphia came into the game having lost two of its last three league outings, conceding five goals to Montreal and four to Los Angeles in the losses.

The game drew an announced crowd of 19,221, short of a sellout on a hot, humid and occasionally rainy evening. The venue is expected to be full Sunday for the women's friendly between Canada and the U.S.

Toronto came out firing on all cylinders, dominating possession while setting up shop in the Union end. Luis Silva had a pair of early chances, choosing to try for a shot that was blocked rather than feed Robert Earnshaw and then failing to get to a Bobby Convey low cross.

In the 20th minute, Philadelphia finally threatened Joe Bendik when Sebastien Le Toux, on a nice through ball from Keon Daniel, hammered a shot off the crossbar.

Philadelphia goalie Zac McMath and Henry were both yellow-carded in the 27th minute after a confrontation that saw McMath object to Henry getting in his way while trying to kick the all away.

Ryan Richter forced a save off McMath in the 35th after finding himself all alone in close.

Henry was sent off by referee Geoff Gamble in the 40th for a second yellow card when he scythed down Danny Cruz on the edge of the box. A poor free kick by Daniel helped Toronto escape further damage.

Darren O'Dea moved over to fill Henry's space at centre back while Convey dropped back to left back. Toronto brought on left back Ashtone Morgan to start the second half, sacrificing Silva.

Toronto assistant coach Fran O'Leary, who clearly had plenty to say, waited for Gamble as the referee left the field after the first half.

Toronto has felt hard done by in recent weeks, with manager Ryan Nelsen arguing that his team deserved a penalty call in last weekend's 2-0 loss in New England. The Toronto coaching staff clearly thought they deserved another when Silva went down early in the game.

Toronto's staff has also argued that their games have drawn too many inexperienced officials.

Toronto defender Steven Caldwell's header from a free kick was off target in the 61st minute and captain O'Dea forced a save off McMath with a good curling free kick.

Yanira Maldonado, 42, walked out of the prison on the outskirts of Nogales, Mexico and into her husband's arms late Thursday. She and her family members could be seen crossing through the Nogales port of entry into Arizona in a small sedan shortly after midnight, The Arizona Republic reported.

Maldonado spoke briefly after her release, thanking U.S. State Department officials, her husband, her lawyers and prison workers who made her stay comfortable.

"Many thanks to everyone, especially my God who let me go free, my family, my children, who with their help, I was able to survive this test," she said.

Maldonado also said at a news conference later that she still loves Mexico, and the experience will not stop her from returning in the future to visit family there.

"It's not Mexico's fault. It's a few people who did this to me and probably other people, who knows?" Maldonado said in comments aired on KSAZ-TV. "I'm still going to go back."

The family's lawyer in Nogales, Jose Francisco Benitez Paz, said a judge determined Thursday that Maldonado was no longer a suspect, and all allegations against her were dropped.

Maldonado's release came hours after court officials reviewed security footage that showed the couple boarding a commercial bus traveling from Mexico to Phoenix with only blankets, bottles of water and her purse in hand.

U.S. politicians portrayed her as a victim of a corrupt judicial system and demanded her release, with Arizona congressmen saying they were working closely with Mexican authorities.

Sen. Jeff Flake, R-Ariz., who previously said he has had "multiple conversations with the deputy Mexican ambassador," on Friday welcomed Maldonado's release.

"Though I'm sure this last week has been a nightmare for her, I'm thankful that Mrs. Maldonado's clear innocence was proved and that she is now home safe with her family," he said in a statement released by his office.

The judge had until late Friday to decide whether to free Maldonado or send her to another prison in Mexico while state officials continued to build their case. Prosecutors could appeal the ruling.

Maldonado was arrested by the Mexican military last week after they found nearly 12 pounds (5.4 kilograms) of pot under her seat during a security checkpoint.

Benitez noted it was a fairly sophisticated smuggling effort that included packets of drugs attached to the seat bottoms with metal hooks a task that would have been impossible for a passenger. He said witness testimony and the surveillance video showed Maldonado was innocent.

"There is justice in this country," he said.

Maldonado husband, Gary Maldonado, said he originally was arrested after the pot was found under his wife's bus seat. But after Yanira Maldonado begged the soldiers to allow her to come along to serve as a translator, the military officials decided to release him and arrest her instead. Gary Maldonado alleges authorities initially demanded $5,000 for his wife's release, but the bribe fell through.

"Here, we are guilty until you are proven innocent," he said after the court hearing.

The Maldonados were traveling home to the Phoenix suburb of Goodyear after attending her aunt's funeral in the city of Los Mochis when they were arrested.

The bus passed through at least two checkpoints on the way to the border without incident. In the town of Querobabi in the border state of Sonora, all the passengers were ordered off the bus and a soldier searched the interior as they waited. The soldier exited and told his superiors that packets of drugs had been found under seat 39, Yanira Maldonado's, and another seat, number 42. Her husband was in seat 40.

Gary Maldonado said a man sitting behind them on the bus fled during the inspection. He said the man might have been the true owner of the drugs.

About 40 people were on the bus before the inspection, but Gary Maldonado said he was the only passenger who appeared American.

Mexican officials provided local media with photos that they said were of the packages Maldonado was accused of smuggling. Each was about 5 inches high and 20 inches wide, roughly the width of a bus seat. The marijuana was packed into plastic bags and wrapped in tan packing tape.

The couple had previously traveled on commercial buses through Mexico because they felt it was safer than driving a personal vehicle.

Yanira Maldonado is a naturalized U.S. citizen who was born in Mexico, her family said. She and her husband have seven children from previous marriages. The couple celebrated their first wedding anniversary while she was jailed.

Drug traffickers have increasingly been using passenger buses to move U.S.-bound drugs through Mexico. Federal agents and soldiers have set up checkpoints along Mexico's main highways and have routinely seized cocaine, marijuana, heroin and more from buses.

Mexico's justice system is carried out largely in secret, with proceedings done almost entirely in writing.

Four years ago, Mexico decriminalized the possession of small amounts of marijuana, cocaine and heroin, but it still has stiff penalties for drug trafficking.

Mexican law doesn't specify a minimum or maximum sentence in drug crimes and leaves it up to the judge to decide how long the sentence should be, said Jose Luis Manjarrez, a spokesman for federal prosecutors in Mexico.

On Wednesday, an army lieutenant, a private and another sergeant were supposed to appear in court but they did not show up. The army did not explain why, the couple's lawyer said.

A search of court records in Arizona turned up no drug-related charges against Yanira or Gary Maldonado.

___

Associated Press writers Michael Weissenstein in Mexico City and Luis Castillo in Nogales contributed to this report.

Formula One stewards ruled that Grosjean, who was suspended for last year's Italian Grand Prix after an accident, had caused the collision with Toro Rosso's Australian Daniel Ricciardo and punished him strongly.

"We will sit down with him and go through the weekend," said team principal Eric Boullier. "It's always the same story, especially in Monaco.

"He had the pace, we could see it. It's even more frustrating because of that."

Grosjean - whose team mate Kimi Raikkonen is second in the championship - crashed heavily in Thursday practice in Monaco and then did the same on Saturday morning, giving his mechanics a race against time to fix the car for qualifying.

In qualifying, he complained bitterly that Ricciardo obstructed him and prevented him reaching the crucial final phase.

"We just need to keep cooling him down and have a proper discussion back at the factory," said Boullier.

"He did a great job over the winter and fixed all the problems he had last year. But there is some frustration some time when he knows he can be fast. He just needs to build himself saying he is fast, and he can deliver some big results."

Grosjean saw a sports psychologist after a spate of accidents last season, including one in Belgium that put Ferrari's Fernando Alonso out of the race, with the Spaniard potentially losing many more points than he would have needed to take the title at the end of the season.

He started the year well, staying out of trouble and getting on the podium with third place in Bahrain.

Italian Davide Valsecchi is Lotus's reserve driver but Boullier played down speculation that he could get a chance instead of Grosjean, without entirely ruling it out.

"Not yet," said Boullier, when asked whether he was considering such a move.

(Reporting by Alan Baldwin, editing by Pritha Sarkar)

The two men were part of a group of 22 skydivers who jumped from a plane in Zephyrhills, about 30 miles northeast of Tampa, according to the Tampa Tribune newspaper.

When only 20 of those who jumped returned, authorities launched a search and found the bodies of the two men a few hours later, Florida media said.

The two men were from Iceland, according to Skydive City, which planned the jump, the Tribune reported.

Their identities were not released.

A spokesman for the Pasco County, Florida Sheriff's Office could not be reached for comment.

(Reporting by Ellen Wulfhorst; Editing by Dan Whitcomb and Todd Eastham)

ONO and rival Jazztel, known as virtual operators because they do not own networks, are making headway in an increasingly competitive environment since the market shifted to convergent offers that bundle phone with television and internet services.

The major attraction of virtual operators, especially in a market like Spain with a 27 percent unemployment rate, is their low prices.

Telefonica, Europe's biggest telecoms firm by revenue, and ONO declined comment on the deal. The source, who declined to be named because he was not authorized to speak to journalists, did not give financial details of the contract.

ONO, which has used Telefonica's Spanish network since 2007, stepped up efforts in its mobile business in recent months, selling the service as part of packages with television, internet and home phone offerings.

Fixed line specialist Jazztel has also recently made gains in Spain's mobile market.

While virtual players still have only a small share of the market, they are attracting new clients as Telefonica and no.2 player Vodafone shed customers.

Banco Sabadell analysts said in a note to clients that conditions of the contract could have been changed to be more favorable to Telefonica due to increased data traffic and investment the company needs to put into a new 4G network.

(Reporting by Robert Hetz and Clare Kane, Editing by Fiona Ortiz and Louise Heavens)

Android, iOS, and desktop users will be treated to a new inbox feature that offers automatic organization of incoming mail into groups.

The "Primary" category will contain messages from friends and family, as well as any other messages that don't appear in other tabs. Another tab called "Social" will automatically contain notifications and messages from social networks sites, like your Facebook notifications or Twitter follower alerts. The "Promotions" group will capture deals, offers and promotions from places like shopping or coupon websites.

Bills, receipts, and confirmation emails will be organized into the "Updates" group, and messages from online groups, discussion boards and mailing lists will appear in the "Forums" group.

The inbox organization groups are optional, and a user can choose which of the five categories, if any, they want to use.

But Google isn't the first to have automatic sorting features. Microsoft and other e-mail add-ons have offered similar features.has a feature called Sweep, which sweeps messages based on their categories into their own folders. Other e-mail apps like Sanebox and Unroll.me have similar sorting features.

Google, however, is bringing its features not just to the web. Users of the Gmail Android or iOS apps will see their Primary inbox tab upon opening the app, but Google has made accessing the other inbox groups easier with swipe gestures and large labels.

The new inbox features will roll out over the next few weeks, but if you can't wait, Google says be on the lookout for it in the Gmail settings menu. You will be able to enable it yourself.

s Xbox One wont surround you with holographic fir trees, azaleas and mountain laurels, nor, as far as I know, will it dish out interactive porn. But itis going to be listening and capturing data, and transmitting that data back to Microsoft in ways no device in your household has ever listened to or observed you before.

When Stan Lee wrote With great power comes great responsibility in Amazing Fantasy#15 back in 1962, he packed a longstanding philosophical notion into six culturally resonant words. Those words couldnt be more relevant today, with our lives awash in cloud-connected technology, generating and beaming back mountains of abstractly defined information thats quietly sifted by complex machine algorithms and pored over by corporations in search of new ways to further secure footholds in our future lives.

So with Xbox One, which promises to streamline how we interact with TV, movies, music and games by introducing always-on, always-connected digital ears and eyes to our living rooms, Id argue the burden on Microsoft to safeguard our privacy (and articulate that in a meaningful, non-pandering way) just shot through the roof.

Consider whatfor starters: The new console will come with Microsofts refined Kinect sensor, a detachable hammerhead-like camera with microphone that youll probably position somewhere high up in your entertainment center, where its upgraded 1080p widescreen eye can easily sweep your play-space. Unlike the Xbox 360, which functions whether the Kinect camera is attached to the console or not, Xbox One wont work without Kinect plugged in. At least part of the reason for this is that Microsoft wants its new system to be instantly responsive and interactively seamless so tuned to your physiology that the company is saying it can even measure your heartbeat simply by looking at you (courtesy its new infrared camera). But that sort of granularity also raises obvious and completely reasonable privacy concerns.

Microsofts been making the rounds in post-Xbox-One-reveal interviews, claiming that itll provide configurable privacy settings, but its been elliptical about what that means in specific terms; all we know for sure is that, at minimum, Kinect will have to be attached to the system for Xbox One to function. (To be fair, some of this pre-launch hedging is doubtless intentional, as the design team makes last minute changes and decisions about exactly how much control over privacy well be allowed.)

Weve also been told that while Xbox One wont cease to function should you a suffer temporary loss of Internet, Internet connectivity will, as rumored, be required; we dont have full details yet, but it sounds like the console will require a hotlineback to Microsoft HQ at least once a day.

Bearing these things in mind, heres my initial question list about Xbox One, narrowly focused on privacy and security concerns.

Will we be able to shut Xbox Ones camera and microphonecompletely off?

In , Xbox group program manager Jeff Henshaw explained that while we wont be able to remove Kinect without crippling the system, wewill be able to completely disable the camera. That should please anyone worried about having to shell out extra for duct tape (you know, to manually cover the lens). But assuming Henshaws properly describing the final shipping product here, note that he says nothing about disabling the microphone. Will we be able to disable Xbox Ones ears, too? And can we disable both of these things permanently, or will we have to do so each time we reengage the console?

Can we opt out of transmitting general behavior and performance data?

Many companies allow you to transmit information about how you use their services, but allow you to opt out completely if you so choose; , for instance, lets you transmit information about how you use OS X, but doesnt require it. Microsoft, by contrast, already requires certain types of data collection when using Kinect with the Xbox 360. For instance, according to the companys referring to Kinect Performance Data:

This information helps us continuously improve Kinect performance. It does not personally identify you, and collection of this data cannot be disabled. As you play, we collect information on how your Kinect device and platform software are functioning, usage patterns within the Xbox Dashboard applications, and other data that does not directly or personally identify you.

Notice the reference to other data that does not directly or personally identify you. That reference reappears in subsequent sections describing other types of Kinect data.Are claims of anonymity sufficient without disclosing what this other data is?

I realize other services (say,) gather reams of anonymous, generalized usage metrics in trade for service access, then shop that data out to third parties, but just because no ones cared enough to raise a fuss doesnt mean it ought to be status quo. With Xbox One, the possibility of capturing consumer data at an unprecedented data-point resolution level in traditionally off-limits environments may seema godsend to corporate marketing departments, but at what point does trading away your ability to control how information youve generated is used for access to whatever service cross the line between reasonable and invasive? If youre going to turn your consumer base at least partially into free marketing fodder, you should at least give them the option not to participate.

Why are Microsofts references to targeted advertising are so vague?

I believe Microsoft when it says Xbox One wont try to target-advertise to individuals based on what they say or do while engaging with Xbox One. But Im not at all convinced Microsoft wont pass aggregatedata on to third parties to use in more general terms. In a sense, youre looking at a hypothetically vast and unparalleled sociological experiment about to embark, where companies can quietly gather behavioral information about us from within the intimacy of our households, collate that data (all while claiming, probably accurately, that its being done anonymously) then use it for marketing and who-knows-what-other purposes, potentially extending well beyond the scope of Xbox One. As noted earlier, just because collected taste-related datas being anonymized doesnt preclude us from being targeted at the demographic level.

How is Microsoft safeguarding Xbox One from hackers? What sort of security measures is it taking, both on the client and server sides?

This isnt just paranoid thinking. Consider the case against furniture retailer Aarons Inc., which whether itself or via franchisees , computers that eventually sent some 185,000 emails containing sensitive information back to corporate computers. The idea that computers in intimate settings might, for one reason or another, surreptitiously capture what were doing and transmit that information illicitly isnt fanciful worst-casing: its already happened.

Over the past few years, weve seen everything from s PlayStation Network to Stratfor to the C.I.A. hacked, whether to deface or disrupt web services or to pilfer personal information or shame companies by distributing that information en masse. An always-on, always-listening system that lives with us in our homes requires extraordinary attention to security much more than just a wink and a smile from Microsoft in its terms and conditions assuring that everythings under control.

Should companies that hope to place a device like this into tens of millions of households have to submit to independent, periodic security reviews? Its worth asking the question. I dont want to overreach, but then imagine how people might react if someone managed to hack into Xbox One server- or client-side captured someone engaged in highly sensitive activity, then pushed that online for public viewing.

Less a question than a request: Dont patronize us in your upcoming Xbox One privacy FAQ, and dont assume the only thing we care about when it comes to data aggregation and transmission is anonymity (or that thats a sufficient definition of privacy and security).

Im not fundamentally opposed to the idea that technology might track my comings and goings and doings at home, or that it might relay that information on to a company like Microsoft, which Im sure intends to use it in at least some capacity to simply improve the service. Making what you do friendlier, more efficient and more relevant is an important aspect of any contemporary, Internet-connected service and theres definitely a glass half full angle to much of this. But we deserve better explanations about these processes as well as reasonably broad control over how they work. And while I have no issue with a console requiring Internet connectivity to function in 2013, I do take issue with this idea that giving up certain privacy rights is an acceptable exchange for access to Xbox Ones traditional services.

In other words, if Microsoft wants to kick this eyes and ears in your home can down the road some more, fine, but the barrier to entry ought to be higher a lot higher than its ever been before.