The Inquirer-Home

Apple might have to sell the Iphone 4 without AT&T in the US

Alleged secret five-year deal incurs consumers' wrath
Mon Jul 12 2010, 10:57

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. µ

Share this:

Comments
After 2 years...

Hmm. after 2 years, Apple would be almost ready to drop updates for the iphone anyway...

posted by : 2 years, 13 July 2010 Complain about this comment
Unlocking iPhone

I disagree with the comment in the article that states "If the plaintiffs win Apple will not be able to sell locked Iphones in the US". All it means is that after the 2 year contract is over they will be required to unlock the phone upon request AND that if you buy the phone outright (ie: Unsubsidized), they must unlock it on request at any time (since in both cases you own the phone at the time of the request).

posted by : Robert A. Rosenberg, 12 July 2010 Complain about this comment
AT&T is good for me.

AT&T is the only carrier that ever treated me right. Go figure. I'll stick with my iPhone and AT&T as long as they sell them that way.

posted by : Nargg, 12 July 2010 Complain about this comment
so

Seeing as apple only makes a GSM phone, an unlocked phone only means a choice of T-mobile and edge. Tough luck to the complainers from verizon.

posted by : Dale, 12 July 2010 Complain about this comment
How is this a monopoly?

there are loads of others phones people can buy, no one is forced to by an iPhone!

posted by : LPF, 12 July 2010 Complain about this comment
Same here

I had a similar "extortion" experience with Verizon. Good luck with yours.

Switching carriers may send a message to your old carrier; unfortunately, your new carrier won't get it.

posted by : Steve W, 12 July 2010 Complain about this comment
AT&T Poor Treatment of Customers

I dropped AT&T completely this week after a ridiculous go round with their billing department over a closed account from 10 months ago. They reinstated the account after I paid off the overdue (the reason it was overdue was they had a wrong mailing address I have never lived at). OF course I never received another bill since they never had the right address and now they would not rescind the charges therefore my credit history would be marred. I paid the charges which in my opinion is basically extortion! Apple needs to ensure that thier loyal customers (me) are happy with anyone they choose to do business with. I will not buy and iPad or iPhone if it is only supported by AT&T.

posted by : Yug Snkde, 12 July 2010 Complain about this comment
aboutus
Advertisement
Subscribe to INQ newsletters
Advertisement
INQ Poll

Facebook starts selling shares

Will you buy Facebook shares?