Lawsuit accuses Apple, AT&T of monopoly with iPhone

“Complaints over Apple’s use restrictions and recent software update for the iPhone have erupted in two lawsuits alleging Apple and its carrier partner, AT&T, engaged in illegal monopolistic behavior,” The Associated Press reports.

“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,” AP reports.

“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,” AP reports.

“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,” AP reports. “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.”

Full article here.

You’d think that no other carrier ever had an exclusive on a mobile phone before or that a company would be so bold as to no support unsupported apps and hacks.

64 Comments

  1. Isn’t this a form of flattery? If the iPhone sucked or was even just ok, no one would be upset, because this has been standard practice for years.

    Of course it’s hard to say what the Monopoly suits again MS are about then. Why don’t people just switch to Mac?

  2. Another ridiculous lawsuit. If Apple were selling the world’s only cellphone, this might make some sense, but there are hundreds of other cellphones, many with more functionality than the iPhone.

    What people are really whining about is that Apple has released the first cellphone with a great, simple to use, interface, and they want in on the action. Unfortunately, to get their foot in the game, Apple had to enter into a financial relationship with a carrier, and that contract’s perfectly legal, and certainly not unprecedented.

    I remember quite clearly a few years back when I was wowed by Motorola’s RAZR, but couldn’t get it because it wasn’t available on my carrier. I had a simple choice, and chose to pass it up…end of discussion.

  3. A monopoly is a situation in which one company has gained control of the market for a particular good or service. This is in direct conflict with the values of liberalism which emphasize competition among numerous producers.
    Even more when it acts so to undermine competitors and shutting down alternatives in a variety of ways.

    Hardly that can be applied to Apple and the iPhone.

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