Stacie Somers v. Apple, Inc.
2013 U.S. App. LEXIS 18246
| 9th Cir. | 2013Background
- Somers sues Apple for alleged federal and state antitrust violations related to DRM in iTS and iPod interoperability
- Plaintiff sought class certification for indirect iPod purchasers under Rule 23(b)(3), which the district court denied
- Somers moved to certify an injunctive/damage class; district court dismissed claims with prejudice under Rule 12(b)(6)
- Allegations center on FairPlay DRM, software updates blocking competitors (e.g., RealNetworks) and purported monopolies in PDMPs and music downloads
- Alleged damages theories include iPod overcharge and diminution in iPod value; later focus on DRM-free music injunctive relief
- Ultimately, the Ninth Circuit affirmed district court’s denials/dismissals and held review of the class certification order waived
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Waiver of class-cert review | Somers | Apple | Review waived |
| Plausibility of antitrust injury for iPod overcharge | Somers | Apple | Dismissed; insufficient antitrust injury |
| Standing/damages under Illinois Brick for diminution in iPod value | Somers | Apple | Dismissed; indirect-purchaser damages barred |
| Injunctive relief for DRM-free music | Somers | Apple | Dismissed; no antitrust injury/insufficient injury to competition |
Key Cases Cited
- Illinois Brick Co. v. Illinois, 431 U.S. 720 (U.S. 1977) (indirect-purchaser damages barred; rule to avoid double recovery)
- Hanover Shoe, Inc. v. United States Machinery Corp., 392 U.S. 481 (U.S. 1968) (antitrust standing and injury requirements)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (U.S. 2007) (pleading standard requires plausible claims; no mere possibility)
- Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (plausibility standard for pleadings)
- American Ad Mgmt., Inc. v. Gen. Tel. Co. of Cal., 190 F.3d 1051 (9th Cir. 1999) (antitrust injury elements; consumer injury requirements)
- Glenn Holly Entm’t, Inc. v. Tektronix, Inc., 343 F.3d 1000 (9th Cir. 2003) (antitrust injury must flow from unlawful conduct and affect competition)
- In re ATM Fee Antitrust Litig., 686 F.3d 741 (9th Cir. 2012) (standing and injury principles; indirect-purchaser constraints)