ipod

02/09/2006, 1:35pm, EST

Thursday, February 9th

Judge approves antitrust case vs Apple

A new ruling has paved the way for an antitrust lawsuit against Apple. The lawsuit, filed against Apple by an unhappy iTunes customer, claims that Apple engaged in anticompetitive behavior by forcing him to buy an iPod. Judge James Ware of the U.S. District Court of Northern California has found the plaintiff, Thomas Slattery, as having "met all requirements for asserting [Apple's iTunes and iPod] tying claim, noting that the complaint alleges Apple has an 80 percent share of the market for legal digital music files and more than 90 percent of the market for portable hard-drive digital music players." Judge Ware has given Slattery the go-ahead to proceed with his monopolization claim under the federal Sherman Antitrust Act, according to eHomeUpgrade. Slattery claimed that Apple's system freezes out competitors, and while one antitrust expert called it a long shot, another antitrust law professor said that the key to such a lawsuit would be convincing a court that a single product brand like iTunes is a market in itself separate from the rest of the online music market.


Filed under: iPod

, , 28comments, del.icio.us, slashdot, digg, buzz


28 comments
Reader Reactions (Please use <i></i> for italic text)

subscribe to comments
for this article




Expand All   Global Settings
Ridiculous
0
02/09, 2:16pm, EST
This is the most ludicrous piece of news I have ever heard. Either this judge is a total moron; or this is some underhanded attempt by some cowardly competition to 'try' and get and edge.
Fresh-Faced Recruit
Joined Apr 2005
User is offline
With that logic...
0
02/09, 2:18pm, EST
I can sue AutoCad for forcing me to buy a PC with windows.
Senior User
Joined Jul 2002
User is offline
somebody...
0
02/09, 2:51pm, EST
...wake me up when the stupid's over.
Fresh-Faced Recruit
Joined Nov 2003
User is offline
itunes predates ipod
0
02/09, 2:52pm, EST
iTunes forced him to buy an ipod? Give me a small break. iTunes was around before iPods and didn't force anyone to buy anything then. "Forced". Nobody forced you to do anything pal. Wonder if he was "forced" to file a lawsuit. Cry me an iRiver ;)
Fresh-Faced Recruit
Joined Oct 2000
User is offline
Way to be topical, macnn
0
02/09, 2:54pm, EST
So I mention this brand new lawsuit to some friends today, and they hammer me for talking about old news. I dig further into the article, and discover that this "new ruling" (which implies that it, you know, is new) was actually passed down LAST SEPTEMBER. So thanks for keeping me up to date with all the latest and greatest Apple news, MacNN. I can't wait to see the article where you talk about Apple moving from 040 to 601 processors!
Fresh-Faced Recruit
Joined Aug 2001
User is offline
first
0
02/09, 2:57pm, EST
there ARE options to the itunes music store, and the ipod. CD sales are also an alternative to online downloads.

Second, the market needs time to catch up. Is Apple a Monopoly for online downloads? Maybe. But the market has only existed for a year or two. You have to give companies like Napster, yahoo, MS, Real, etc. a chance to catch up.
Fresh-Faced Recruit
Joined Nov 2000
User is offline
rok
forced to buy an ipod
0
02/09, 2:58pm, EST
as someone has already pointed out, itunes does NOTHING to force someone to buy an ipod. it never has. why? you can BURN any music you buy to a COMPACT DISC (remember those?) and then play on ANY CD PLAYER ON THE PLANET. recall the "Rip. Mix. Burn" campaign, which was pre-iPod?

I swear, this guy needs to have his head examined.
Fresh-Faced Recruit
Joined Mar 1999
User is offline
Wow, that's good.
0
02/09, 3:08pm, EST
Somebody should read him the following definition of "monopoly:"

A situation in which a single company or group owns all or nearly all of the market for a given type of product or service. By definition, monopoly is characterized by an absence of competition - which often results in high prices and inferior products.

80% is good, but it's not even close to "all or nearly all" when it comes to actual choice, units sold, and competition. If anything, the iPod's dominance is on shaky ground due to competing devices that continually surpass it in features and undercut it in price.
Mac Enthusiast
Joined Jan 2001
User is offline
So...
0
02/09, 3:15pm, EST
So Apple is a monopoly and Microsoft isn't?!
Fresh-Faced Recruit
Joined Jan 2006
User is offline
Interesting...
0
02/09, 3:35pm, EST
that Apple is being accused of "engaging in anticompetitive behavior" as it relates to the dominance of iTunes Music Store and iPod in their markets. In fact, it is actually the things Apple did NOT do that are at issue. Apple did not license its DRM standards to others. Apple did not license MS DRM standards to use on iTunes and iPods. The consequences are that there is a very close inter-relationship between iPods and iTunes. But can Apple be sued for "non-action"? NOT doing something (something that would make the situation less profitable for shareholders), is not "engaging in anticompetitive behavior." Apple attained it's dominance in those markets by making wise business decisions.
Fresh-Faced Recruit
Joined Nov 2001
User is offline
additional comments:..1..2..3..Next
Your Comments

In order to post comments: If you are a registered member, please login with your MacNN Forums username and password otherwise please uncheck the checkbox below.


Registered Member?
macnn forums login:

macnn forums password:

Not a member of the MacNN forums? Register now for free.

RSS Feeds

Have the latest content delivered to your desktop via RSS. Use the links below to get access to a specific blog, news, or reviews feed.



  MacNN -all

  MacNN Reviews

  MacNN Podcasts

  iPodNN

  Electronista

  Left Lane News

Check Out the VIERA from Panasonic!: Enter a New Visual Era with Panasonic VIERA HDTVs. An Enhanced Experience.

Get an IT Degree Online: Get solid credentials. Take your hobby to the next level. Adult Programs. Affordable.

Convert PDF to Word: Easily Convert PDF to Word Doc, Excel, and More. Fast and Accurate. No Registration Trial

Check Out the VIERA from Panasonic!: Enter a New Visual Era with Panasonic VIERA HDTVs. An Enhanced Experience.

NewsGator Enterprise RSS: Improve Corporate Communication via Web 2.0, RSS, and Social Computing.

Buy from The Apple Store, iTunes.com, Amazon.com, TechDepot, OfficeDepot, Computers4Sure, or donate.