Apple iPhone Overpricing Antitrust

WHAT’S THE ISSUE?

Hagens Berman has filed a lawsuit against Apple Inc. for allegedly locking consumers into using its products, establishing an illegal monopoly over the smartphone market. The lawsuit accuses Apple of suppressing technologies and innovations that would make it easier for consumers to switch device ecosystems. Attorneys say Apple’s anticompetitive conduct has enabled it to charge supracompetitive prices to hundreds of millions of consumers for iPhones while generating historic profits.

WHO IS AFFECTED?

Owners of any model iPhone purchased directly from Apple may be affected. Fill out the form to find out your rights.

ABOUT APPLE’S ALLEGED “LOCK-IN” STRATEGY

The lawsuit accuses Apple of violating antitrust laws by orchestrating a monopoly over the smartphone market. Attorneys say it did so by systematically erecting a variety of barriers that discourage consumers from leaving Apple’s platform and purchasing a non-Apple device, effectively locking them into using Apple devices.

According to the complaint, the central pillar of Apple’s “lock-in” strategy is suppressing technologies and innovations that would make it easier for consumers to transition from Apple products to a different brand. Apple has allegedly stifled development of the following technologies to impede consumers from migrating to other devices:

• Super Apps: Super apps host an array of programs and device features, and function as a gateway to accessing the functionality of a smartphone. According to the lawsuit, because super apps reduce costs and barriers to switching devices, Apple has blocked them through an array of technological and contractual restraints.
• Cloud Streaming Game Apps: Cloud streaming game apps provide users with a way to play computing intensive games in the cloud, thus decreasing the importance of Apple’s expensive hardware. Apple has allegedly severely constrained cloud streaming game apps on iPhones to stunt cross-platform competition.
• Messaging Apps: According to the complaint, Apple degrades the functionality of third-party messaging apps, recognizing that high-quality messaging apps with cross-platform functionality would enhance competition among smartphone manufacturers and threaten its alleged monopoly.
• Smartwatches: The lawsuit states that to further lock in its customers, Apple has made the Apple Watch incompatible with competitor smartphone devices such as Android phones, while strategically degrading the functionality of third-party cross-platform smartwatches.
• Digital Wallets: Digital wallets store payment information and permit users to make payments by “tapping” their smartphone on a payment terminal. According to the lawsuit, Apple blocked third-party digital wallets from accessing the technologies needed to perform tap payments from Apple’s devices, ensuring that only its own proprietary and Apple-specific app — Apple Pay — can provide this functionality.

APPLE’S HISTORIC PROFITS

According to the lawsuit, Apple’s “lock-in” strategy enables it to charge supracompetitive prices for its smartphones, with recent models selling for as much as $1,599. Apple’s profit margins on iPhones are allegedly more than double those of industry competitors.

YOUR CONSUMER RIGHTS

Our legal team believes Apple’s policies may violate antitrust laws and restrict consumer choice for the sake of profit. You may have overpaid for your iPhone and be entitled to monetary compensation under the Sherman Antitrust Act. The lawsuit also seeks non-monetary, injunctive relief in the form of requirements that Apple cease its allegedly anticompetitive conduct.

EXPERIENCED HIGH-TECH LAW FIRM

Hagens Berman is one of the most prominent plaintiffs’ litigation law firms in the U.S. and has achieved settlements valued at more than $320 billion in lawsuits across its practice areas. The firm successfully pursued antitrust claims against Apple, securing a settlement valued at $616 million on behalf of e-book purchasers and a settlement valued at $100 million on behalf of iOS app developers. Potential claims will be handled by lawyers experienced in these matters.

NO COST TO YOU

In no case will any class member be asked to pay any out-of-pocket sum. In the event Hagens Berman or any other firm obtains a settlement that provides benefits to class members, the court will decide a reasonable fee to be awarded to the class's legal team.