Class Certified in iPhone Exclusive Dealing & Monopolization Case

Update January 2010:  Northern District of California Judge James Ware dismissed with leave to amend a complaint filed by an indirect purchaser alleging that Apple charged anticompetitive fees for music that could play on non-Apple devices and had issued updates that reduced the value of i-pods because they limited the ability of the Apple device to play music from non-i-tunes sources.  The court held that the complaint could not move forward for damages as an indirect purchaser claim and that the claims as stated failed to allege anticompetitive conduct.

Update December 2010:  Northern District of California Judge James Ware has stayed class action proceedings relating to AT&T and Apple’s i-Phone agreements pending the U.S. Supreme Court’s decision in AT&T Mobility Corp. v. Concepcion, which will decide whether states can require class adjudication of arbitable claims.  The court held that any prejudice to the plaintiffs as a result of delay would be outweighed by prejudice to the defendants from moving forward in the face of uncertain litigation standards.

Update October 2010: The Ninth Circuit has denied the defendants interlocutory appeal challenging class certification.

N.D. CA Judge James Ware certified a class of iPhone purchasers in litigation alleging that Apple and AT&T monopolized the market for iPhone voice and data services by entering their exclusive agreement.  The court dismissed claims against Apple relating to the introduction of software that made phones inoperable.

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