The Justice Department is warning Apple and five big publishers that it may sue them for colluding to increase the price of electronic books.
The Wall Street Journal, which first reported the story, explains that Justice's concerns emerged as Apple released its first iPad. Essentially, the paper explains, they were afraid that Apple would do to them what it did to the recording industry, which is tie them to prices set by Apple.
Update 5:25 p.m.: Altria, the parent company of Phillip Morris, released a statement responding to the Surgeon General's report. "We agree with the Surgeon General and others that kids should not use tobacco products, and we share the common goal of keeping tobacco products out of the hands of kids," the statement reads, emphasizing that tobacco companies do not market directly to children. It says Phillip Morris has given states more than $55 billion in settlements over the last 15 years, but says states have not used the money to its full potential.