“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.
I mean 755p. Whoops.
It is not illegal to have a monopoly. It is illegal to use it to gain a competitive advantage in other transactions. Whether Apple has a problem or not would seem to hinge on whether the market in question is “wireless devices” of iPhones alone. It seems like a stretch to identify a market for iPhones entirely separate from wireless communication devices in general. The iPhone may be the best one of the breed, but, it does not seem to be an entirely different kind of device altogether.
This seems like a nuisance law suit. I wonder if it is being funded by M$.
Countries like Saudi Arabia and Malaysia don’t have phones locked to certain carriers, you buy a phone from an electronics or cellphone store and pop in any sim you like.
I understand that Apple needed to get a foot in the door with the aid of AT&T;in the U.S., and that visual voicemail had to be supported from the carrier, but I’m afraid that this trend of locking and price gouging will spread to other countries as well.
I know you guys are dedicated lemmings following in whatever line you are instructed to queue up in, but seriously most of you people are completely head-fucked. Okay, because of the way cell phones have been sold by the cellular industry in the US we are stuck with locked iPhones. Fine. But why the hell are you pissed off at people trying to change that, or at other countries that don’t permit similar restrictions?
If the iPhone is unlocked Apple will sell more phones. If the iPhone is open to third party applications, Apple will sell more phones. Hell, someone could invent a third-party application for the iPhone that makes it attractive to millions of people that otherwise wouldn’t think of buying an iPhone. Remember all those Apple II’s sold because of VisiCalc? PC’s sold because of Lotus 1-2-3 and WordPerfect?
Okay, Apple’s stuck doing some stupid things because the US cellular industry makes companies that want to participate in the industry do stupid things, but people trying to change how that industry is required to work are doing a good thing, not a bad thing.
Apple should allow unlocking of the phone to other carriers. People won’t complain so much about the apps if they weren’t tied to AT&T;’s greed. personally I can’t wait until the iPhone comes out in France. as it is ILLEGAL TO SELL A CARRIER LOCKED PHONE.
That’s right once apple releases the iPhone in many european countries the locking system will disappear, because it will be illegal. then i just have to import one, and change the language settings.
@ Dave
Newsflash! PEOPLE DO NOT HAVE A GOD GIVEN RIGHT TO TELL APPLE OR ANY OTHER COMPANY WHOM THEY CHOOSE TO USE AS A CELL SERVICE PROVIDER. Just because they make the best smartphone in the biz but YOU and others don’t like AT&T;, doesn’t give you the right force anyone’s hand and try to make Apple unlock the iPhone. It doesn’t matter if AT&T;’s service doesn’t work where you live and work – that’s not Apple’s fault. The fact that they chose AT&T;and only AT&T;is irrelevant. It’s Apple’s product not yours and THEY get to choose how to implement it! You don’t like that? TOO BAD! Go buy a POS Blackberry.
Exactly WHICH market does Apple/ATT have a monopoly in? The cell phone device market? Hardly – the iPhone is still at the bottom regarding market share. The wireless network market? ATT is the largest, but they don’t have anywhere near half the market, let alone a monopoly.
This is the same lame argument made by those who charges that Apple has a “monopoly” on the MP3 music player market.
The only “monopoly” that Apple/ATT have at this point is an exclusive arrangement to sell the hottest product on the market. And since when is that a crime?
MDN Word: “girls”, as in “the competition should stop whining like little girls about monopolies and start competing with better products and services”.
@ opj
Fine. So why not sue just the service provider AT&T;? Why include Apple in the suit? As you said, “Apple’s stuck doing some stupid things because the US cellular industry makes companies that want to participate in the industry do stupid things.” Also notice that the focus in the suit is on Apple allegedly violating monopoly laws with less emphasis on AT&T;’s part. This is nothing but a thinly veiled attack on Apple. Nothing more.
The reason this is a complete waste of time is that, as the inventor, manufacturer and retailer of the iPhone, it’s *Apple’s choice* as to what carrier, what features and what restrictions they want to offer.
To say that Ford must make all of its cars fully capable of driving on any kind of road surface (asphalt, cement, dirt, offroad, mountain terrain, ice, submerged) while offering sports car performance and while carrying a full load of lumber, is to lose sight of the fact that the product is manufactured to be attractive to a specific market segment with a specific feature set. It’s not meant to be all things to all people.
If it doesn’t float your boat as it’s offered, then don’t buy it. But to file a lawsuit… to attempt force the manufacturer to redesign it so that it *does* float your boat… is insane.
Egotistical, self-absorbed, I’m-the-only-person-in-the-universe-whose-needs-are-important…
In other words, American. Unfortunately, we’re a sick society, getting sicker every day.
Bob: “I’m suing GM, because the only engine choices I had were theirs!!! Talk about a locked down system!!!
Worse yet, to keep the warranty I had to go to them for service! Man, this is a monopoly, and absolute monopoly!!!”
Question: “And Bob, why didn’t you buy some other brand of car instead – there are over 40 different brands you know…”
Bob: “Uh, well, because you know, my brother, he uh, he works for GM and got me a discount so…”
Yeah, nice. This is a total joke of a lawsuit. Apple’s SW updates might have broken the phone to work on other networks, which is what is being aledgedly raised here, but no one using the phone on another carrier had to EVER update the phone either, but they did, so they screwed themselves.
Make choices people and live with them – and please – shut up and take the trial lawyers with ya!
The only other network that the iPhone *could* work on in the U.S. in its current configuration is T-Mobile. Not Verizon, not Sprint/Nextel, etc. Is T-Mobile really that much of a better choice than AT&T;? No, I didn’t think so.
@AP
“MDN Word: “girls”, as in “the competition should stop whining like little girls about monopolies and start competing with better products and services”.
I think the problem is that for what ever reason, most of them are completely incapable of competing by making better products. It’s far easier to just sue, spread FUD, etc.
How does ONE product… oh, TWO if you count the 4 and 8 GB iPhones, constitute a monopoly?
Apple SHOULD unlock the iPhone, with disclaimer warning that not all of it’s features, like visual voive mail, will be enabled or function if using a carrier other than AT&T;.
What’s the big deal there?
@AP
Indeed. I thought we would start to see some serious attempts at creating more user friendly phones from other companies once the iPhone was released. It’s been 3 months and seems to me like it’s business as usual for all the cell phone manufacturers.
Wow….this is how success is rewarded nowadays?
Im all for allowing the iPhone on all services, but lets not be stupid, this is not a monopoly.
Consoles such a PS3, 360, and Wii only allow people to play games for their console. Is that a monopoly? no. Microsoft, Apple, none of these companies currently have a monopoly.
Its all a luxury, and a choice… >.<
Ah, so if Apple made the iPod to only work with songs purchased from the iTS and not from regular CDs, that would be cool with you guys?
@ Realist
“Ah, so if Apple made the iPod to only work with songs purchased from the iTS and not from regular CDs, that would be cool with you guys?”
OK. You win the prize for the most INANE, IRRELEVANT, AND IDIOTIC analogy ever used for this discussion. What an unbelievable display of ineptitude.
There are plenty of other cell phones that are available only for certain carriers i.e. LG’s Chocolate, and isn’t Verizon’s new “iPhone killer” only available for Verizon? Why aren’t you people hounding those companies? Hmmm…could it be that it’s because the iPhone is an Apple product and the whiners are a bunch of M$ shills and fanboys?
I want to form a hit squad to track down all of these sue-happy scumbags and their lawyers and eradicate them in the most painful and hideous ways. The ‘Saw’ movies come to mind.
I really can’t see them winning. I bet these lawyers haven’t a clue how the phone industry works. Apple and AT&T;are by no means unique in their partnership.
I think this is a preemptive lawsuit so that laywers can maintain their monopoly on frivolous law suits.
I agree with Dave Marsh. Just another stupid lawsuit by a spoiled turd that used to having his way.
So say we all.
If the truth ever comes out…
I’m sure that AT&T;pushed for “exclusivity” a whole lot harder than Apple did…!
Interesting how all this crap comes out of California. Those people need to get a life and a job.
Three words: god bless america…lol