Apple sued over exclusive iPhone deal with AT&T

Two iPhone users claim Apple has violated the Sherman Act and the Digital Millennium Copyright Act by locking their handsets to the AT&T network without their permission. They're now suing Apple in an effort to get their iPhones unlocked, and for monetary damages. They also want a restraining order that will prevent Apple from locking its smartphone to carriers completely.

Apple installed locks on its iPhone to prevent the device being used on a competing network, violating the Digital Millennium Copyright Act, which says users should be allowed to modify their phones for use on a wireless network of their choice, according to the plaintiffs. Apple's first three iPhone models - the iPhone 2G, 3G and 4 - could only operate on AT&T's network and required a special code in order to be "unlocked," or capable of operating with SIM card from a different operator.

"Through these actions, Apple has unlawfully stifled competition, reduced output and consumer choice, and artificially increased prices in the aftermarkets for iPhone voice and data services," the plaintiffs said.

Now, Apple's latest iPhone 5 and the iPhone 4S are available through the three main U.S. operators: AT&T, Sprint and Verizon.

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