US judge allows class action against Apple
Source: Agencies |
July 13, 2010, Tuesday
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Print Edition
Print Edition
A JUDGE in San Jose, Californian, says a monopoly abuse lawsuit against Apple Inc and AT&T Inc's mobile phone unit can move forward as a class action.
The lawsuit consolidates several filed by iPhone buyers starting in late 2007, a few months after the first generation of Apple's smartphone went on sale.
An amended complaint filed in June 2008 takes issue with Apple's practice of "locking" iPhones so they can only be used on AT&T's network, and its absolute control over what applications iPhone owners can and cannot install on the gadgets.
The lawsuit also says Apple secretly made AT&T its exclusive iPhone partner in the United States for five years. Consumers agreed to two-year contracts with the Dallas-based wireless carrier when they purchased their phones, but were in effect locked into a five-year relationship with AT&T, the lawsuit argues.
The actions hurt competition and drove up prices for consumers, the lawsuit claims.
Apple and AT&T have not commented on the terms of their deal. In its response to the complaint, Cupertino, California-based Apple said it did not hurt competition.
In court documents filed on July 8, Judge James Ware said parts of the lawsuit that deal with violations to antitrust law can continue as a class action.
Ware dismissed other claims, among them allegations that Apple broke the law when a software update caused some phones to stop working and deleted programs users had purchased.
The lawsuit seeks to stop Apple from selling locked phones in the US and from determining what programs can be installed.
The lawsuit consolidates several filed by iPhone buyers starting in late 2007, a few months after the first generation of Apple's smartphone went on sale.
An amended complaint filed in June 2008 takes issue with Apple's practice of "locking" iPhones so they can only be used on AT&T's network, and its absolute control over what applications iPhone owners can and cannot install on the gadgets.
The lawsuit also says Apple secretly made AT&T its exclusive iPhone partner in the United States for five years. Consumers agreed to two-year contracts with the Dallas-based wireless carrier when they purchased their phones, but were in effect locked into a five-year relationship with AT&T, the lawsuit argues.
The actions hurt competition and drove up prices for consumers, the lawsuit claims.
Apple and AT&T have not commented on the terms of their deal. In its response to the complaint, Cupertino, California-based Apple said it did not hurt competition.
In court documents filed on July 8, Judge James Ware said parts of the lawsuit that deal with violations to antitrust law can continue as a class action.
Ware dismissed other claims, among them allegations that Apple broke the law when a software update caused some phones to stop working and deleted programs users had purchased.
The lawsuit seeks to stop Apple from selling locked phones in the US and from determining what programs can be installed.
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