Monday, July 12, 2010

Judge applies class action status to lawsuit against Apple, AT&T


The Associated Press reports a federal judge will allow a lawsuit filed against Apple and iPhone wireless carrier AT&T to proceed as a class action.

At issue is Apple's control over what applications can be installed to the iPhone as well as their exclusivity deal with AT&T. The lawsuit alleges actions taken by the two companies is hurting competition, says AP.

The lawsuit also claims the following, from the AP:

"Apple secretly made AT&T its exclusive iPhone partner in the U.S. for five years. Consumers agreed to two-year contracts with the Dallas-based wireless carrier when they purchased their phones, but were in effect locked into a five-year relationship with AT&T."

The lawsuit seeks an injunction to stop Apple from selling iPhones locked into AT&T's network and more freedom for installing software to the smartphone.

Apple did comment to AP, disputing the impact on competition in the market.

ALSO: Consumer Reports won't recommend iPhone 4

By Brett Molina

courtesy of USAtoday

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