Lawsuit Over AT&T's iPhone Exclusivity Gains Class Action Status

164623 apple att logos

Late last week, Wired reported that a lawsuit filed against Apple and AT&T over the carrier's exclusivity arrangement for the iPhone has received class action status, meaning that it now automatically covers every iPhone customer in the United States.

In an interview Friday with Wired.com, Mark Rifkin, lead counsel representing the plaintiffs of the suit, highlighted that the terms of AT&T's two-year customer contract say that customers have the option to terminate whenever they wish for a fee to switch to another carrier.

By only offering the iPhone on one carrier, iPhone customers are still essentially locked in despite having the termination option, the suit argues.

Playing a significant role in the lawsuit has been the disclosure in documents related to the case that AT&T's exclusivity agreement with Apple was originally scheduled to last five years from the device's 2007 launch, or into 2012. The plaintiffs have argued that even customers fulfilling their two-year contracts with AT&T for the iPhone are unable to switch carriers and continue using their handsets, effectively locking them in to AT&T for longer than their signed contract unless they are willing to switch phones.

In a response filed by Apple's legal team in 2008, Apple claimed the allegations of monopoly were contrived.

"[T]here was widespread disclosure of [AT&T's] five-year exclusivity and no suggestion by Apple or anyone else that iPhones would become unlocked after two years," Apple said in a response. "Moreover, it is sheer speculation - and illogical - that failing to disclose the five-year exclusivity term would produce monopoly power."

Some observers have pointed to the original five-year exclusivity agreement between Apple and AT&T as evidence that the iPhone will not be making an appearance on Verizon or any other U.S. carrier in the near future. Multiple sources have indicated in recent years, however, that the exclusivity agreement is for a significantly shorter period of time, possibly expiring this year and opening the door for the iPhone to make its way to competing carriers. Even if the original agreement did call for a five-year exclusivity period as detailed by USA Today in 2007 and confirmed in the court documents associated with this case, it is certainly possible that Apple and AT&T have renegotiated their agreement such that more recent reports of shorter timeframes are accurate.

Related Forum: iPhone

Popular Stories

maxresdefault

Apple Announces 'Let Loose' Event on May 7 Amid Rumors of New iPads

Tuesday April 23, 2024 7:11 am PDT by
Apple has announced it will be holding a special event on Tuesday, May 7 at 7 a.m. Pacific Time (10 a.m. Eastern Time), with a live stream to be available on Apple.com and on YouTube as usual. The event invitation has a tagline of "Let Loose" and shows an artistic render of an Apple Pencil, suggesting that iPads will be a focus of the event. Subscribe to the MacRumors YouTube channel for more ...
Apple Silicon AI Optimized Feature Siri

Apple Releases Open Source AI Models That Run On-Device

Wednesday April 24, 2024 3:39 pm PDT by
Apple today released several open source large language models (LLMs) that are designed to run on-device rather than through cloud servers. Called OpenELM (Open-source Efficient Language Models), the LLMs are available on the Hugging Face Hub, a community for sharing AI code. As outlined in a white paper [PDF], there are eight total OpenELM models, four of which were pre-trained using the...
Apple Vision Pro Dual Loop Band Orange Feature 2

Apple Cuts Vision Pro Shipments as Demand Falls 'Sharply Beyond Expectations'

Tuesday April 23, 2024 9:44 am PDT by
Apple has dropped the number of Vision Pro units that it plans to ship in 2024, going from an expected 700 to 800k units to just 400k to 450k units, according to Apple analyst Ming-Chi Kuo. Orders have been scaled back before the Vision Pro has launched in markets outside of the United States, which Kuo says is a sign that demand in the U.S. has "fallen sharply beyond expectations." As a...
iOS 18 Siri Integrated Feature

iOS 18 Rumored to Add These 10 New Features to Your iPhone

Wednesday April 24, 2024 2:05 pm PDT by
Apple is set to unveil iOS 18 during its WWDC keynote on June 10, so the software update is a little over six weeks away from being announced. Below, we recap rumored features and changes planned for the iPhone with iOS 18. iOS 18 will reportedly be the "biggest" update in the iPhone's history, with new ChatGPT-inspired generative AI features, a more customizable Home Screen, and much more....
iPad And Calculator App Feature

Apple Finally Plans to Release a Calculator App for iPad Later This Year

Tuesday April 23, 2024 9:08 am PDT by
Apple is finally planning a Calculator app for the iPad, over 14 years after launching the device, according to a source familiar with the matter. iPadOS 18 will include a built-in Calculator app for all iPad models that are compatible with the software update, which is expected to be unveiled during the opening keynote of Apple's annual developers conference WWDC on June 10. AppleInsider...