Apple Accused of Monopoly

TEXARKANA, ARK. (CN) - Apple abuses its monopoly power in the MP3 player market to squeeze out and ruin competitors, Luxpro claims in Federal Court. The Taiwanese company says Apple sells more than 80% of U.S. music downloads through its iTunes franchise.

Luxpro says Apple makes its money not from the 99-cent downloads, but from its MP3 players.

The company complains that Apple files harassing litigation to delay and damage legitimate competitors, and sends letters to companies that do business with Luxpro, demanding that they sever relations. This has scared away major U.S. retailers, including Circuit City, Radio Shack, Best Buy and Starbucks, according to the federal complaint.

Luxpro demands damages for interference, monopolization, and unfair competition. It is represented by Richard Adams with Patton Roberts of Texarkana, Texas.

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