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Thursday, October 11, 2007

Lawyer Sues Over IPhone’s Little White List

Move over hackers, here come the lawyers. A suit claiming that Apple’s restrictions on the iPhone constitute unlawful competition has been filed in the United States District Court in the Northern District of California. The suit, which is seeking class action status, is the second iBrick-related case. On Friday, a California resident, Timothy Smith, filed a similar case in state court. (AppleInsider has coverage of both the federal and state suits.)

Max Folkenflik, the lawyer in the federal suit, said it turns on the idea that Apple is illegally bundling AT&T wireless service and Apple’s own software with the iPhone. Other phones, he argued, are available unlocked for one price, and linked to a particular carrier for a lower price. But iPhone users don’t have that choice.

This aspect of the suit, however, turns on establishing that Apple dominates its market and that its bundling actions impede competition. Since Apple is still a tiny force in the vast cellphone business, this may be a difficult hurdle, but Mr. Folkenflik says he intends to argue that the iPhone market is separate from that for other phones.

Read the whole article @ NY Times

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