IPhone Antitrust Litigation to Proceed

Judge James Ware, U.S. Dictrict Court for the District of California, denied Apple and AT&T’s motions to dismiss a putative class action alleging that Apple violated Section 2 of the Sherman Act by monopolizing the market for aftermarket iphone applications.  The complaint alleges that Apple notified iphone users that downloading third-party applications would void the phone’s warranty.  The complaint also alledges that Apple and AT&T monopolized the market for iphone voice and data service by entering a 5-year exclusivity deal.  Although iphone purchasers agreed to a 2-year contract with AT&T for voice and data service, Apple and AT&T are alleged to have improperly monopolized the market for iphone voice and data service after the initial 2-year contracts expire.

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