Federal Judge James Ware in Northern California approved a monopoly abuse lawsuit against Apple and AT&T – a process that was actually started by iPhone users back in 2007. As class action lawsuits go, this will be a long process, but the impact could be quite positive. http://bit.ly/99IRcR
One of the complaints is that the iPhone can only be used with AT&T’s network. Perhaps the outcome of this lawsuit will mean that Apple can be released from its exclusive arrangement with AT&T, allowing the iPhone to be supported in any other network, such as Verizon. This would be fantastic! Competition drives down price and better coverage is a must.
Another complaint is that Apple broke laws when it updated its iPhone software, causing some phones to stop working and deleted programs that users had purchased. It’s not clear if this complaint will be addressed, but it does sound like there will be an injunction to keep Apple from selling locked iPhones in the US and from determining what programs people can install. This injunction is instrumental as I believe it means that developers will be able to develop programs for the iPhone using any multi-media platform (such as Adobe Flash) they want. This supports a healthier developer community (on-going Flash projects for the iPhone can continue) and greater competition which always drives down cost.
I know it’s kind of early to make this claim, but it makes sense that Apple will have to bend as the market will not tolerate monopolistic behavior regarding a hardware device that is expensive and has relatively poor coverage. It will be interesting to see how this lawsuit plays out. What are your predictions?