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Appeals Court Reverses Dismissal of Class-Action iPhone Complaint Against Apple

The 9th U.S. Circuit Court of Appeals reversed a lower court’s dismissal of a class-action antitrust complaint against Apple and remanded the case to the lower court for further proceedings. Several plaintiffs sued Apple in U.S. District Court in San…

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Francisco soon after it launched the iPhone in June 200, alleging Apple installed “software locks” on each iPhone it sold to “enforce” its five-year exclusivity agreement, said Monday's 9th Circuit opinion. The locks prevented AT&T’s iPhone customers from switching to wireless carriers that competed with AT&T, and the plaintiffs alleged that the five-year exclusivity agreement enabled the carrier to charge “supra-competitive prices for wireless services,” the opinion said. The court dismissed the complaint for failure to name AT&T as a defendant. In reversing the dismissal, the lower court “abused its discretion” in finding that AT&T was a “necessary party” in the complaint, the opinion said. The lower court also failed to identify AT&T’s “interests in this action, or address how those interests, if any, might be impaired if this action were resolved in its absence,” the opinion said. Representatives of Apple, AT&T and the plaintiffs didn’t comment Tuesday.