NEW YORK ( TheStreet) -- A ban on certain Apple (AAPL - Get Report) products that was supposed to begin on Monday was vetoed over the weekend by the White House, TheStreet's Chris Ciaccia told Jeanne Yurman.
Because of patent infringements with Samsung, the International Trade Commission ruled the iPad 2 and iPhone 4 would be banned starting this week. However, the Obama Administration ruled on Saturday that the ban was detrimental to the U.S. economy and consumers, and therefore would be overturned.
Ciaccia said the White House had a valid argument but it sets bad precedence. It's the first ruling of its kind in nearly 25 years, surprising analysts and market participants. As a result, Apple traded slightly higher, while Samsung lost nearly $1 billion in market cap during the South Korean trading session.
Ciaccia said the Obama Administration has overstepped its boundaries and should have respected the ruling by the ITC. It's also interesting because South Korea, where Samsung is based, is a U.S. ally.Because of the overruling, he believes Samsung will continue to battle through the courts. Instead of focusing on new smartphones and products over the next couple of months, the attention will now remain on the Apple-Samsung court cases. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell