“Apple Inc. tried a two-economists-are-smarter-than-one strategy to convince a jury in a $1 billion antitrust trial that it wasn’t trying to cheat consumers with its early iPod upgrades,” Robert Burnson reports for Bloomberg News.
“Two University of Chicago professors summoned by Apple testified Dec. 10 and Thursday that a Stanford University economist called earlier as a witness by consumer attorneys got it wrong when he calculated that ‘locking’ iPod users to iTunes raised prices starting in 2006 and resulted in damages to consumers and retailers totaling $351 million,” Burnson reports. “Robert Topel, one of the Chicago academics, testified Thursday that Stanford economist Roger Noll failed to take product improvement into consideration when doing his analysis.”
“Topel’s colleague, Kevin Murphy, told the jury Dec. 10 that Apple’s ‘integrated’ system for digital music, made up of a music player, a media player and a music store, was ‘pro=competitive’ and benefited consumers because it was seamless, reliable and easy to use,” Burnson reports. “Because Apple controlled every piece of the system, ‘it had the flexibility to innovate,’ Murphy said. ‘There was no anticompetitive impact.'”
Read more in the full article here.
MacDailyNews Take: A real jury would have laughed itself to death over this farce by now. Good luck, Apple.
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