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Complaints over Apple Inc.'s use restrictions and recent software update for the iPhone have erupted in two lawsuits alleging Apple and its carrier partner, AT&T Inc., engaged in illegal monopolistic behavior. Two separate lawsuits were filed Friday in San Jose - one in federal court and the other in state court and both seeking class-action status
Though I do see where they are coming from, and that it is the same in the UK with 02, and how they are charging non-competitive high prices, but...
1. By definition, AT&T and Apple cannot have a monopoly together. A monopoly is the control of a market by a single company only, and there are no laws against trust.
"S: (n) trust, corporate trust, ... (a consortium of independent organizations formed to limit competition by controlling the production and distribution of a product or service) 'they set up the trust in the hope of gaining a monopoly' "
http://wordnet.princeton.edu/perl/webwn?s=trust
I agree the lawsuit is frivolous, but Apple does have a monopoly on their hardware. However, since they face stiff competition from other companies, it's not a big issue.
2. The iPhone does not even have a majority share of the cell phone market so, again, by definition this is not a monopoly.
3. Mobile phone carriers commonly have exclusive rights to particular phone models, and that practice, of bundling a proprietary service with a product, is found in many other industries.
4. It's not a cartel because AT&T is in a different business from Apple.
What about, Halo 3 is a monopoly since MS/Bungie makes it and it can only be played on an XBOX 360?
From AP:
Quote:
Suit Accuses Apple, AT&T of Monopoly
2 days ago
SAN JOSE, Calif. (AP) — Complaints over Apple Inc.'s use restrictions and recent software update for the iPhone have erupted in two lawsuits alleging Apple and its carrier partner, AT&T Inc., engaged in illegal monopolistic behavior.
Two separate lawsuits were filed Friday in San Jose — one in federal court and the other in state court and both seeking class-action status.
The federal case accuses the companies of unfair business practices and violations of antitrust, telecommunications and warranty laws. The state case raises some of the same allegations.
Apple spokeswoman Susan Lundgren and AT&T spokesman Mark Siegel both declined to comment on them Wednesday.
The federal case was filed by the firms of Hoffman & Lazear in Oakland and Folkenflik & McGerity in New York on behalf of iPhone owners Paul Holman and Lucy Rivello. The state case was filed by Saratoga attorney Damian Fernandez on behalf of California resident Timothy Smith.
AT&T is the exclusive carrier in the U.S. for Apple's iPhone.
By not allowing consumers to modify their iPhones to work on other carrier networks, the two companies conspired from the beginning of their partnership to maintain a monopoly, the federal lawsuit alleges.
The companies are unlawfully restricting consumer choice by preventing users from "unlocking" their iPhones, and Apple intentionally disabled unofficial third-party programs or rendered unlocked phones useless with its software update, the lawsuit alleges.
Apple issued the update Sept. 27 after warning users that any ensuing damage to iPhones with unauthorized modifications was not covered by the product's warranty.
It is unclear how many iPhones were disabled or how many iPhone owners have modified their handsets.
Some hacker communities estimated that thousands of people have downloaded their "unlocking" programs, while AT&T's Siegel says the company has heard from "very few" customers that have done so.
The federal lawsuit stated it didn't know how large the affected class could be but pegged the number at 100 or more and anticipates "there will be millions."
Apple has sold more than 1 million iPhones since they hit the market June 29.
Apple, AT&T Sued For iPhone “Monopoly”
Dealerscope, PA - Oct 11, 2007
A pair of plaintiffs have filed suit against both Apple and AT&T,
alleging that the companies have acted illegally in keeping the iPhone “locked” in AT&T’s ...
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