Exclusivity with AT&T Leads to Another Lawsuit

Even though Apple has ended their exclusive iPhone relationship with AT&T, they are facing yet another legal battle. This time, however, the lawsuit was filed by two iPhone users.

The class-action suit was filed last Friday in U.S. District Court for the Northern District of California with the aim to ban Apple from selling any devices that are “locked,” those which only work on a specific operator’s network, as well as pay monetary damages. The two users who filed the claim, Zack Ward and Thomas Buchar, specifically address devices purchased between October 19, 2008 and February 3, 2011.

Previously, Apple was convinced in violation of section 2 from the Sherman Antitrust Act of 1980 by failing to inform or seek approval from consumers when they established an exclusive working partnership with AT&T Mobility for five years.

Several components of the current lawsuit have since become irrelevant due to changes made by both AT&T and Apple, but Apple could be required to pay damages regardless.

The first three iPhone models, the 2G, 3G, and 4, would only operate outside of AT&T’s network with a special code to “unlock” it. In October 2007, Apple was sued because of its exclusive agreement with AT&T, eventually developing into another class-action suit.

Finally, in February 2011, Apple released the iPhone 4 and included the Verizon network alongside AT&T, thereby marking a premature end to its exclusivity contact with AT&T. In June of that year, they began selling unlocked phones for any carrier on the GSM network.

Interestingly, AT&T refused to unlock a user’s iPhone after their contract had expired, except in extenuating circumstances. This inevitably bound the user to the carrier even after their contract was completed. In April of this year, however, AT&T finally began to unlock previously-contracted iPhones.

The two newest iPhones are now available on the three chief networks of AT&T, Sprint, and Verizon. (RP) Link