iPhone Monopoly: Do you know anything about this lawsuit: Apple iPhone Antitrust Litigation 11- cv-06714, U.S. District Court, Northern District of California (Oakland)? While some may answer yes, most are probably unsure of what this “code” means. Fortunately, there is an easier explanation. This is the lawsuit claiming that Apple Inc. (NASDAQ:AAPL) has a monopoly over iPhone apps.
Apple Inc. (NASDAQ:AAPL) is actually the smart money’s second favorite publicly traded company but hedge funds have started dumping Apple in favor of a surprising financial stock (see which stock hedge funds are buying like crazy).
At this point, Apple Inc. (NASDAQ:AAPL) has to be sick and tired of all the lawsuits. If it isn’t this one, the Cupertino-based company is fighting with Samsung over patents.
Bloomberg is reporting the following:
“Attorneys who filed the suit in 2011 claim that a monopoly exists because an iPhone user who doesn’t want to pay what developers charge for applications available through Apple’s App Store can’t go anywhere else to buy them. Apple requires iPhone software developers to turn over 30 percent of what they charge for an application, increasing prices and excluding competitors from the iPhone “aftermarket” of applications, they claim.”
Although this sounds good at first, to some, at least, others realize that this does not make much sense. For this reason, Apple Inc. (NASDAQ:AAPL) is hoping to have the case dismissed in the near future.
Apple attorney Dan Wall recently attending a court hearing related to this case in Oakland, California. Here is what he told U.S. District Judge Yvonne Gonzalez Rogers:
“There’s nothing illegal about creating a system that is closed in a sense”
This prompted an attorney for the other side to ask the following question:
“Can a consumer go somewhere else to buy Angry Birds for the iPhone? If the answer is no, then Apple is a monopolist”
At this point, there is no date set for a ruling. However, it is safe to say that U.S. District Judge Yvonne Gonzalez Rogers has her work cut out for her.
What do you think about this lawsuit? Do you believe that Apple Inc. (NASDAQ:AAPL) is within its rights? Or do you think the company will end up paying big time? Share your thoughts in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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