Luxpro Can Sue Apple for Alleged MP3 Monopoly

     SAN FRANCISCO (CN) – Apple must face claims of abusing its monopoly power in the MP3 player market and sending threatening letters to a Taiwanese competitor’s partners, demanding they sever ties while disparaging the competitor’s products.
     U.S. District Judge Jeffrey White found Luxpro had corrected earlier deficiencies in its complaint by showing it did business with several specific retailers and distributors that Apple allegedly threatened to boycott, with the exception of Circuit City.
     Luxpro brought the action against Apple in 2008, claiming the tech giant used abusive tactics to squeeze it out of the MP3 player market, such as telling Luxpro’s customers that it would not allow them to sell its widely popular iPod if they continued to sell Luxpro’s competing product.
     White also found Luxpro sufficiently showed that Apple knew about those business relationships and intentionally interfered with them, but could not say whether letters Apple allegedly sent to Luxpro’s customers calling their products “cheap knockoffs” and “illegal copies” were actionable, as Luxpro’s complaint omits the complete set.

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