Apple Inc (NASDAQ: AAPL) will defend against allegations that it abused a monopoly position in the digital music player market as it heads to trial in a case that could cost the company about $1 billion U.S. if it loses.
Opening statements are scheduled to begin on Tuesday in an Oakland, California, federal court in the long-running class action, brought by a group of individuals and businesses who purchased iPods between 2006 and 2009. They say a 2006 iTunes update dictated that iTunes music could only be played on iPods, unfairly blocking competing device makers.
Plaintiffs are seeking about $350 million U.S. in damages, which would be automatically tripled under antitrust laws. Apple says the software update contained genuine product improvements, and thus should not be found anti-competitive.
The case is one of a handful of antitrust lawsuits Apple has defended over the past year. A New York federal judge found Apple liable last year over allegations it colluded with publishers to drive up e-book prices. Apple is appealing that ruling.
Apple was also one of several tech companies that agreed to settle claims that they colluded to hold down salaries by agreeing not to poach tech workers from competitors. A U.S. judge rejected that $324.5 million U.S. settlement as too small, though Apple has asked an appeals court to reinstate it.
The case headed to trial on Tuesday harks back to Apple's pre-iPhone era, when the iPod was its flagship mobile device. Several emails from Apple co-founder Steve Jobs are expected to be entered into evidence, along with short deposition excerpts of Jobs videotaped before he died.
Apple shares opened Tuesday at $114.21 U.S., down 86 cents, from Monday's close, within a 52-week trading range of $111.27 U.S. to $118.93 U.S.
Tech Insider
