Apple (NASDAQ:AAPL) Faces Antitrust Trial That Will Highlight Steve Jobs E-mails.
The lawyer for consumers who are suing Apple (NASDAQ:AAPL) told the court that the late co-founder of Apple (NASDAQ:AAPL), Steve Jobs made the company violate antitrust laws by limiting the acquisition of music for iPod consumers to Apple (NASDAQ:AAPL)’s iTunes store only.
Steve Jobs was not happy about the fact that a rival company was going to introduce a program that would allow the consumers to purchase music from anywhere they like and then play it on Apple (NASDAQ:AAPL)’s iPod product. Jobs email saying that they might need to change things here, which was written in 2005, was shown to the jurors on Tuesday on the opening day of the trial. The e-mail was provided to prove that Jobs had indeed used unfair means to stop rival companies from playing music on iPod devices.
Individuals as well as businesses that bought iPods between 2006 and 2009 are suing Apple (NASDAQ:AAPL) for $350 million for unfairly preventing rival companies from playing music on Apple (NASDAQ:AAPL)’s iPod and the amount will automatically get tripled as per the antitrust law.
Bonny Sweeny, the prosecutor’s lawyer presented the court with e-mails written by Apple (NASDAQ:AAPL) executives which included Steve Jobs anticipating the threat that Apple (NASDAQ:AAPL) might have to face in the online music fete from Real Networks. Real Networks had developed a digital song manager which allowed the music bought on Real’s store to be played on Apple (NASDAQ:AAPL)’s iPod. Sweeny further told the jury that comprised of 8 members that Apple (NASDAQ:AAPL) was concerned that Real Network will eat into their market share.
As a result, Apple (NASDAQ:AAPL) came up with software that stopped the Real Player music from being played on the iPod which discouraged the customers who owned iPods from purchasing music from any competitive devices.
On the other hand Apple (NASDAQ:AAPL)’s lawyer William Isaacson defended Apple (NASDAQ:AAPL) by saying that it is the company’s right to enhance iTunes in order to protect iPods from any security related threats that might be caused by Real Networks software or any other similar sources.
Issacson also said that the availability of music from any outside source was a danger to the customer experience as well as the quality of the product.
According to an e-mail written by jobs in July 2004, he suggested a press release regarding Real Networks to other Apple (NASDAQ:AAPL) executives. In the e-mail jobs is seeking opinion of other Apple (NASDAQ:AAPL) executives about his statement that said that he was shocked that Real is using the tactics of a hacker and breaking into iPod.
In the 2011 deposition Steve Jobs was seen a little agitated and when he was asked about Real Networks existence.
Apple (NASDAQ:AAPL)’s representatives argued that the company did not have any monopoly power in the digital music player market and it is under no legal obligation to make its products suitable for rival companies.
Apple (NASDAQ:AAPL)’s Chief Eddy Cue as well as Schiller are expected to testify at the hearing. The case is being held at U.S District Court, California.