Alleged secret five-year deal incurs consumers' wrath By Rob Coppinger
MONOPOLY ABUSE is the allegation made against Apple and AT&T in a class action lawsuit that has been given the go-ahead by a US federal judge.
The complaint relates to Apple allowing Iphones to be used only on the AT&T network and dates back to 2007 when the first legal actions took place. Multiple lawsuits that included challenges to apps limitations have now been combined into a single class action.
Judge James Ware of the US District Court for the Northern District of California decided that parts of the lawsuit that dealt with antitrust law violations can continue as a class action. He dismissed other claims against Apple including that the company broke laws when an update to the Iphone's OS caused phones to stop working and deleted apps programs that users had purchased.
The Associated Press reports that Apple has sold over 50 million Iphones in the last three years and that the lawsuit says the fruit-themed company secretly made AT&T its exclusive Iphone partner in the US for five years.
Consumers agree to two-year contracts with AT&T so the deal would conceivably lock customers into six years of contracts. The class action includes anyone who bought an Iphone with a two-year AT&T agreement since the device first went on sale in June 2007.
If the plaintiffs win Apple will not be able to sell locked Iphones in the US and might have to pay the plaintiffs legal fees and other costs. In its response to the complaint Apple said it did not hurt competition.
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