Author: Francesca Published on : Sep 23,2017

Last week, I reported on a lawsuit that accuses the folks at Apple of knowingly marketing a defective product. There's no news on that story as of this time today, but Apple's name is gracing the headlines this morning for an entirely different reason. A lawsuit filed back in 2007 appears to be gaining momentum as a judge granted the plaintiffs class action status. This suit, based on antitrust grounds, pertains to the unholy alliance between Apple and A.T & T. The plaintiffs allege that when they initially purchased their iPhones, customers were required to sign mere 2 year agreements, which turned out to be 5 year contracts, a fact they believe these companies concealed so as to soften the monopolistic blow. Since AT&T is the sole service provider for Apple products, users are forced to either accept the company's rates and lousy connectivity or abandon their expensive cell phones. And let's not forget that the U.S. Department of Justice is conducting its own investigations into Apple's on-line music ventures as well as its choices regarding software programs. So, it seems as though Apple's legal troubles are piling up faster than Lindsay Lohan's; it's probably only a matter of time before Steve Jobs ends up blubbering on your T.V. screen about how he didn't knowhe wasn't in compliance with the Sherman Antitrust Act.

Neither Apple nor A.T. & T. are willing to publically comment on this matter, which comes as no surprise given the blurry of bizarre press releases and statements that have been flying out of the Apple team lately. It's important to keep in mind that A.T.& T. has been down the old antitrust road several times before as has Apple, although this suit feels more menacing given the circumstances. As for the merits of the case, well, that's up to a judge to decide. The internets abound with rumors about unlocking iPhones to open them up to additional service providers, although it's highly unlikely that these clandestine techniques will truly undermine the legal rationale at the heart of this case. Opening the door to class action status certainly signals a negative predisposition towards these questionable business practices. Essentially, all 20 million or so iPhone customers are now potential plaintiffs in this case. Still, American antitrust jurisprudence is complex and evolving, and within the last 3 years or so, the Court has narrowed its doctrines so as to make it increasingly difficult for plaintiffs to pursue these types of cases. In fact, the only major antitrust decision in recent memory involved Microsoft, and you can bet Mr. Jobs reveled in that ruling for at least a decade.

In light of today's news, Apple's stocks have slipped again despite the recent release of two ridiculously overhyped products, namely the iPhone 4 and the iPad (AT&T's stock appears perfectly peachy). Notwithstanding the barrage of publicity, the list of media outlets denouncing the iPhone 4 grows larger by the minute. Yes, word's gotten around, and sane people aren't buying what the positive spin doctors are selling anymore. The nail in the iPhone 4's proverbial coffin came this afternoon when Consumer Reports felt it necessary to detract its initial glowing review of the device in favor of an updated version that reflects the grim relaties of sheer technological incompetence. Their timing couldn't be better as no one but shameless fanbois ingesting Apple's infamous Kool Aid intravenously would dare utter praise for this mechanical monstrosity at this point. Curiously, in the face of the repeated litany of user complaints, the iPhone 4 hasn't lost its stellar standing in the customer review sections on Best Buy.com, or Wal-Mart.com. Naturally, those familiar with Apple's site are already aware that it has no review section to speak of, which leads me to believe that there may be at least a modicum of a method to Apple's madness.