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| Apple Gavel |
Two iPhone owners filed a putative class action against Apple,
accusing the tech giant of violating antitrust laws as iPhone is locked
to AT&T in making calls and utilizing wireless data.
Zach Ward and Thomas Buchar claim that Apple committed a violation of
the Sherman Act, which prohibits monopolization, as it did not obtain
contractual consent from its customers to have their iPhones locked when
Apple forged an exclusivity agreement with AT&T in 2007.
The agreement was enforced with Apple installing software locks on
iPhones that barred buyers from taking their iPhones to a competing
wireless carrier. In doing so, the plaintiffs claim that Apple violated
the Digital Millennium Copyright Act, which allows smartphone owners to
modify their phones for use on the wireless network of choice.
Apart from monetary damages, the lawsuit is seeking an order that
would bar Apple from keeping their iPhones locked, demanding the company
to provide SIM unlock codes to owners on request. In addition, the
plaintiffs also wants to prevent Apple from selling iPhones without
disclosing about the software locks and obtaining buyer’s contractual
consent for such arrangement.
Source: Ward et al vs Apple Inc., via CNET
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