Apple monopolization claim
p2p news / p2pnet: iTunes user Thomas Slattery was angry because he was, “also forced to purchase an Apple iPod” if he wanted music to go, he said just over a year ago.
But he did more than merely gripe. He also sued Apple for unspecified damages and now he’s been given the go-ahead to launch a monopolization claim against Apple Computers under the federal Sherman Antitrust Act.
His complaint alleges Apple has an 80% of the market for legal digital music files and more than 90% of the market for portable hard-drive digital music players, says eHomeUpgrade.
“As some of you know we’ve been having some thoughtful discussions on Apple, iPod, and its DRM in the forums (here and here), but I don’t think any of us knew that the numbers were as high as the judge found the evidence to be,” says Alexander Grundner in his post.
“Also of interest was that Judge Ware specifically rejected Apple’s argument that tying doesn’t apply since consumers can buy iTunes music for playback on their computers without having to own an iPod. I’m sure some will say that this is not a monopoly, but ask yourself: What other online music services, other than the iTunes Music Store, offers Apple’s Fairplay DRM wrapped music for you to purchase for your iPod? That’s right, exactly zero. So unless you own a physical CD and have ripped the tracks to MP3 or AAC, there’s no other way to add music to the device other than by way of iTunes. (OK, there are two non-traditional exceptions: 1) Services like eMusic that sell DRM-free MP3s, and 2) Real’s Harmony software that can convert their copy protected music to a compatible format for the iPod – Note that Apple threatened Real with a lawsuit for providing this feature.)”
Also See:
forced to purchase – Apple sued over iTunes, January 6, 2005
eHomeUpgrade – Northern California Judge Gives Green Light to Monopolization Suit Against Apple, February 7, 2006
February 21st, 2006 at 10:33 pm
you don’t need a physical CD. THe Virtual Drive in Nero works fine enough.
February 23rd, 2006 at 5:23 am
“Sherman Antitrust Act.”
wow, I thought the US government forgot all about this law. Hmmm, Dreamscape, Microsoft, Sony… the list of companies that are monopolies are endless, yet the government is doing nothing about it.
Oh well, one company down, 200 corrupt companies left to destroy.