Why was sale of Apple Watch banned in USA?

In the United States, a ban on the import of Apple Watch smartwatches into the country has come into force. The administration of US President Joe Biden refused to veto the relevant decision of the International Trade Commission (ITC), issued on the basis of a lawsuit by Masimo, which specializes in medical monitoring technologies and accused Apple of stealing its technology.

So, the ITC order, which took effect on December 26, prohibits the import and sale in the United States of Apple Watch devices using technology for measuring blood oxygen levels that violates Masimo patents (note that this technology was first introduced in the Apple Watch Series 6, released in 2020 ). The US Trade Representative, Katherine Tai, after careful consultation, decided not to lift the ban, and the ITC order took effect.

Last week, Apple suspended sales of the Apple Watch Series 9 and Ultra 2 models in the United States. The ban does not affect the budget model Apple Watch SE and previously sold devices. Retailers are allowed to sell remaining stock of specified models, but cannot import new ones.

Masimo claims that Apple poached its employees, stole its technology and used it in its watches. Apple responded by filing a countersuit against Masimo, calling the company's efforts a "maneuver to clear the way" for its own smartwatches.

Interestingly, in 2013, the Barack Obama administration lifted the ITC ban on imports of iPhones and iPads as part of a patent dispute between Apple and Samsung, and no similar measures have been applied since then. In this case, the Joe Biden administration also did not veto the ITC decision regarding the Apple Watch. And in February, the Biden administration refused to veto another ban on Apple Watch imports in a lawsuit filed by medical technology company AliveCor, but the department's decision later became invalid for other reasons.

It’s worth noting that Apple's division of wearable devices and accessories, including Apple Watch and AirPods headphones, brought the company revenue of $8.28 billion in the third quarter of 2023.