Apple sued over apps privacy issues; Google may be next

Tue Dec 28, 2010 1:58pm EST
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"None of the defendants adequately informed plaintiffs of their practices, and none of the defendants obtained plaintiffs' consent to do so," one lawsuit alleged.


In April, Apple amended its developer agreement to ban apps from sending data to third parties except for information directly necessary for the functionality of the apps.

However, the lawsuits allege that Apple has taken no steps to actually implement its revised developer agreement or enforce it in any meaningful way due to criticism from advertising networks.

Apple could not be immediately reached for a comment.

Global Equities Research analyst Trip Chowdhry said the lawsuits would have little impact on investors.

"If this were a major issue, all web browsers would have to shut down and there would not be any advertising on the Internet," Chowdhry said.

Apple shares were up 74 cents at $325.42 in afternoon trade on Tuesday on Nasdaq. They touched an all-time high of $326.66 earlier in the session, as investors were unperturbed by the lawsuits.

ThinkEquity analyst Rajesh Ghai said although there is scope for social media companies to tighten their policies to prevent the leakage of sensitive personal information, he did not expect the current lawsuits to have any impact on Apple in the long term.   Continued...