APPLE SUED FOR ANTI-COMPETITIVE PRACTICES

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A popular app distributor Cydia for jailbroken devices before Apple launched App Store, filed a lawsuit Thursday against Apple in the US District Court for the Northern District of California, alleging Apple uses anti-competitive practices to assert a monopoly over software distribution on iOS.

The lawsuit alleges that Apple has eliminated all competition in the app store market. It claims that Apple ties App Store to iPhone purchases by preinstalling it on all iOS devices and making it the default method to obtain iOS apps.

The lawsuit also explains that Apple has made it mandatory for all iOS app developers to use App Store as their sole option for app payment processing, such as in-app purchases.

“Apple has wrongfully acquired and maintained monopoly power in the market for iOS app distribution, and in the market for iOS app payment processing. Apple has frozen Cydia and all other competitors out of both markets, depriving them of the ability to compete with the App Store and to offer developers and consumers better prices, better service, and more choice………………………………………………………………………………….. Apple’s actions establish a claim of unlawful competition on multiple grounds. Apple’s anticompetitive and tortious conduct gives rise to a claim under the “unlawful” business practices prong of the UCL. …………… Similarly, Apple’s anticompetitive conduct gives rise to a claim under the “unfair” business practices prong of the UCL. ……………..As a direct and proximate result of Apple’s conduct, Cydia has suffered and will continue to suffer damages including but not limited to lost business and potential bankruptcy.

Cydia has demanded a jury trial and is suing Apple under Sections 1 and 2 of the Sherman Act and the California Business and Professions Code.

Please see the complaint