Apple and the monopoly on the tablet market

    In Australia, the Samsung Galaxy Tab 10.1 tablet has been banned from sale for more than a month, although the Korean company tried to cancel the decision of an Australian court. In a new call recently formulated against that decision, the lawyers of the Samsung company argued that the judge who gave the initial decision made a series of fundamental mistakes that caused a serious injustice to the Asian company. In fact, those from Samsung were prohibited from selling the tablet for infringing some patents of the Apple company, but the decision could be canceled by the court that accepted the appeal filed by Samsung.

We contend that the primary judge made a series of fundamental errors in her disposition of the interlocutory application" Samsung's lawyers told the three appeals judges. "They were all errors of principle." The end result, the argument went, was that Samsung was unfairly penalized at "a critical time in the development of [the tablet] market.

If you have a fast moving product which if taken off the market, destroys the opportunities available to the newcomer and preserves the monopoly of the incumbent then you'd have to have a very close look at the strength of the case.

    The problem for Apple now is that one of the appeal court judges is of the opinion that the American company currently has a monopoly on the tablet market. This is not so true globally, although Apple sells the most tablets, it only has two-thirds of the market and could lose a fairly large share in Q4 2011. Only in Australia Apple could have a monopoly on the market but without clear data is hard to guess. However the situation of those from Apple would appear now, the judges of the appeal court in Australia could solve the problems of those from Samsung and could decide to cancel the decision to ban the sale of tablets.

    Even with that ruling, some chain stores in Australia are still selling imported Samsung Galaxy Tab 10.1 because Apple managed to get an injunction against Samsung only.