According to a federal judge, Apple Inc. must defend itself against a lawsuit accusing the company of allowing advertisers to secretly track the activity of millions of mobile users. However, Google Inc. and several other defendants were dismissed from the case.
In a decision late on Tuesday, June 12, U.S. District Judge Lucy Koh in San Jose, California federal court ruled that iPhone, iPad and iPod Touch owners may pursue claims against the Cupertino, California-based tech giant under two California consumer protection laws. Koh oversees nationwide litigation consolidating 19 lawsuits.
The judge, however, tossed out claims that Apple violated customers' privacy rights, as well as claims under federal laws related to computer fraud, wiretaps, and record disclosure, Reuters reported. In addition to Google, other defendants dismissed from the case include AdMarval Inc, Flurry Inc, Admob Inc, and Medialets Inc.
Invasion of Privacy
The lawsuit followed an April 2011 presentation based on two computer programmers' research, showing that iPhone owners had their movements monitored through their devices. The assertion fueled a firestorm and regulators demanded changes, which Apple pledged to make. Late Apple CEO Steve Jobs addressed the allegations in multiple interviews at the time, and said the company never tracked nor would ever track customer movements.
Meanwhile the plaintiffs in the lawsuit claimed Apple designed its devices to allow mobile advertising analytics companies such as Google and the other defendants to collect personal data when users download free apps, including from Apple's Web site. According to the plaintiffs, this was done without the users' permission, and was inconsistent with Apple's written promise that it would take steps to protect personal information against misuse.
Data Collection
The data gathered included addresses, genders, ages, functions performed on particular apps, as well as identifiers assigned to devices. Moreover, some device owners even said Apple collected data regarding their precise whereabouts at a given moment.
In the ruling on Tuesday, Judge Koh said the plaintiffs may pursue claims that because of Apple they overpaid for their devices. According to the judge, this decision was based on Apple's statements concerning privacy protection, and "the consumption through the defendants' actions of finite bandwidth and storage space," Reuters reported. Apple claimed that user agreements protected it from liability, but Koh argued there was "some ambiguity" regarding whether all the data that was collected was permitted.
Amended Complaint
When it comes to the privacy claims under California's state constitution, the judge said the alleged invasion of privacy in this case was not an "egregious breach of social norms" and might even be deemed "routine commercial behavior," according to Reuters. Koh had already dismissed an earlier draft of the plaintiffs' lawsuit back in September 2011, but gave the plaintiffs another chance. The judge's ruling on Tuesday is based on an amended complaint.
The case is In re: iPhone Application Litigation, U.S. District Court, Northern District of California, No. 11-02250.
