The Christmas season has come and gone, and for most Americans, it was a time of making Christmas lists, shopping for loved ones, and anxiously awaiting sharing gifts with family and friends.
But what if I told you that one of the most popular gifts in America was banned from being brought into the U.S. the day after Christmas? A federal government agency decided just that. On December 26th, the Apple Watch was officially banned from the United States, with a final decision pending appeal.
I was honored to serve as Chairman of the House Energy and Commerce Committee, which had jurisdiction over health care and medical devices. It is in the national interest, and in the interest of preventive health care to allow watches generally (and Apple watches specifically) to have the technology in them to allow people to monitor their blood oxygen.
However, on October 26, the International Trade Commission (ITC) made a final determination in favor of Masimo, a medical device company, against Apple. This decision means that Apple is banned from importing Apple Watches into the United States unless it is settled in the courts.
It was only recently that Masimo, which mostly makes medical technology for hospitals, claimed that Apple stole the blood oxygen technology used in the Apple Watch. See, this technology has been in Apple Watches for years and now, all of a sudden, Masimo sued Apple in federal court and in front of federal government bodies claiming Apple is infringing on its patent. During an interview with Bloomberg, Kiani essentially admitted to using the ITC to gain more market share, and he will try as many venues as possible to obtain that. Most recently, Masimo’s related case in federal court was declared a mistrial because the jury sided with Apple 6-1.
It’s perplexing that an unknown government agency and a little-known medical device company with a vendetta can take away the Apple Watch from millions of Americans.
Such a wrong and overreaching decision could affect our memories of this festive season and bring economic repercussions with it.
The timing of the ITC ban, just a day after Christmas, couldn't be worse. Apple Watches have become a staple gift, cherished by many as a thoughtful present for loved ones. With this ruling in place, countless Americans who may be planning to gift an Apple Watch next year will find themselves scrambling while supplies last. The Grinch has indeed arrived, taking away a watch that millions of Americans love and want.
Beyond the impact on holiday celebrations, the economic fallout of this ruling will be impossible to ignore. With a halt in imports, Apple stands to lose a substantial portion of its market share, and this loss will undoubtedly be reflected in its stock prices. The implications extend further, affecting not only Apple but also its vast network of suppliers, retailers, and service providers affecting their business, their revenue, and their employees. The interconnected nature of the global economy means that a hit to one major player can send shockwaves through the entire system. This will result in job losses and financial strain for businesses along the supply chain.
The impact on American consumers is equally concerning. The Apple Watch is not just a trendy gadget; it has proven health benefits, offering features such as heart rate monitoring and fall detection. The Apple Watch has saved people's lives countless times. By banning it, the ITC is limiting access to life-saving technology that millions of Americans love.
All hope is not lost. A federal court is weighing whether the ITC’s decision will stand, and the White House and Congress have the power to reform the ITC so nothing like this happens again. The Grinch may have won this Christmas, but we can still prevent him from lurking around next year.
Joe Barton is a former Chairman of the House Energy and Commerce Committee and served in Congress representing the 6th congressional district of Texas from 1989-2019.