iPod antitrust lawsuit set to kick off tomorrow
The iPod's glory days are long gone, but plaintiffs certainly have long memories. Add a slow-moving judicial system into the equation and what we have, in a broad sense, is an upcoming anti-trust trial regarding Apple's ancient efforts to restrict music purchased on the iTunes Music Store to the iPod.
The original claim against Apple goes all the way back to 2005 and is rooted in Apple's previous efforts to lock DRM-laden music tracks to Apple MP3 players exclusively. The lawsuit additionally alleges that Apple in the mid-2000s took measures to prevent the iPod from playing songs purchased from competing music stores. Apple, of course, would eventually do away with music-based DRM in 2009, but the lawsuit soldiered on. And so, here we are in 2014 with a trial set to kick off regarding issues that have long since been rendered irrelevant.
CNET reports:
The case involves two plaintiffs, Melanie (Tucker) Wilson and Marianna Rosen. Both are consumers who purchased audio downloads and iPods directly from Apple. They argue they paid more for iPods than they would have paid if Apple hadn't violated antitrust regulations. In a 2010 filing, the plaintiffs said they "suffered injury" to their property "in the form of overcharges."
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The plaintiffs say because music from other stores wouldn't work with iTunes and iPods, customers were forced to buy more music directly from iTunes. When it came time for consumers to buy new music players, they had to buy iPods because of all the iTunes music they owned. Because demand was higher for iPods, the prices increased, causing consumers to overpay for Apple's music players, they say.
The trial will get underway tomorrow and, interestingly enough, will feature deposition and video testimony from Steve Jobs. In one potentially eyebrow-raising email highlighted by the New York Times, Jobs in 2003 emailed Apple executives and expressed concern that songs from a rival music service would be playable on the iPod.
"We need to make sure that when Music Match launches their download music store they cannot use iPod," Jobs said at the time. "Is this going to be an issue?"
Apple contends that many of the strict barriers it put up around its iPod/iTunes kingdom were put into place a) at the behest of music labels and b) to ensure a safe and functional user experience.
All told, the plaintiffs are seeking $350 million in damages. CNET has a comprehensive overview of all the pertinent facts and issues of the case that's certainly worth a look.
