Apple not required to pay damages in iPod antitrust case

Apple didn’t abuse its dominant market position when it tweaked its iTunes software to sideline competitors. As a result, Apple will not have to pay compensation to iPod owners who were affected by the software changes.

The jury of the Oakland court ruled that Apple did not abuse its market position in the offending software update in which it removed music from the iPod if it was not purchased from iTunes. According to the jury, the new software did contain significant software improvements, so that Apple cannot be held responsible for the inconvenience that users of competing software experienced.

The ruling seems to prevent Apple from paying damages that could have amounted to many hundreds of millions of dollars. However, it is possible that the prosecutors will appeal. Millions of iPod owners have joined the class action lawsuit. The case involved the 2006-2009 period, when Apple allegedly used its market position to artificially inflate the prices of iPods.

Apple itself indicated in the lawsuit that it wanted to make an attempt to improve the security of iTunes with the software updates. According to the company, iTunes was “totally hacked” in the period around 2008. However, a former employee said Apple was deliberately trying to stifle competition.