Apple fails to delay watch sales ban Only Biden can

Apple fails to delay watch sales ban. Only Biden can intervene. – Business Insider

Down Angle Symbol A symbol in the form of an angle pointing downwards. Apple's attempt to delay a ban on some of its Apple Watch models was rejected on Wednesday. The Biden administration has until December 25 to lift the ban. Kevin Lamarque/Portal

  • US regulators said Apple violated patents with its popular watches.
  • The decision means an impending ban on sales of the watches, which Apple wanted to delay.
  • Regulators rejected Apple's offer on Wednesday, leaving the decision to the Biden administration.

Apple's attempt to delay a U.S. sales ban on its Series 9 and Ultra 2 watches was rejected by regulators on Wednesday, leaving President Joe Biden the option to lift the ban.

In October, the U.S. International Trade Commission (ITC), which oversees commercial and intellectual property disputes, agreed with an ITC judge's earlier ruling that Apple's blood oxygen tracking feature in some cases violated patents owned by a medical technology company called Masimo have violated his watches.

Apple had previously said it disagreed with the ITC's findings, but on Monday announced plans to preemptively remove its Series 9 and Ultra 2 watch lineup from U.S. shelves. Those plans appear to be moving forward after the ITC rejected Apple's attempt to delay the ban, according to a notice filed by the commission on Wednesday.

The last day to purchase Series 9 and Ultra 2 watches online is December 21st. Retail stores will stop selling the models entirely on December 24th. Third-party sellers like Best Buy or Amazon can continue to sell the watches until supplies run out.

While Apple has said it will appeal the decision, which could take more than a year to resolve, the company's most immediate hope of lifting the ban before Christmas lies in the hands of the White House.

The Biden administration had 60 days since the ITC order was issued on October 26 to veto the decision; The review period ends on December 25th.

But experts say it is unlikely that Biden will intervene at the last minute.

“Historically, presidents have used the censure power only five times since the founding of the ITC (in 1916),” lawyers at Milbank LLP, an international business law firm, wrote in 2011.

The sixth time an ITC ruling was overturned was in 2013, when President Barack Obama vetoed a decision to ban some iPhone and iPad models.

A veto typically requires a company to demonstrate that there is a public interest or that the issue is a health policy issue, The Verge reported.

Apple has also been looking for workarounds through software updates, sources familiar with the matter told Bloomberg.

Since the Apple Watch was introduced in 2015, the product quickly gained notoriety, holding about 30% of the global smartwatch market in 2022, according to Statista.

The ban is expected to amount to $300 million to $400 million in lost holiday season sales – a small scratch compared to the $120 billion the company is expected to rake in between October and December.

An attorney and spokesperson for Apple did not immediately respond to a request for comment.

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