By Jay Jay
No competition laws were flouted by Apple and the company has now been cleared in an iPod related trial that could have cost the company almost $1bn.
Stung by a $350 million class action antitrust lawsuit that accused it of deliberately deleting songs originating from rival music services from its users’ iPods from 2007 to 2009, Apple emerged victorious on Tuesday thereby avoiding a potential $1 billion cash payout.
The suit alleged that when users synced their iPods with the iTunes music library, error messages popped up instructing the users to restore their factory settings. Once restored, all the music that the user streamed from rival music services would disappear from the iPods.
It further alleged that iPod users were never informed of Apple’s actions, stifling competition and forcing users to pay more for Apple’s iPods and services. The eventful trial saw the Judge throwing out plaintiffs who were found not to have purchased Apple’s iPods during the period in contention.
Apple successfully deposed that the iTunes 7.0 update in question was a ‘genuine product improvement’ that had no effect on iPod prices and saved the customers’ iPods from being penetrated by hackers.
The plaintiffs are planning to appeal the decision.