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US Supreme Court allows anti-trust suit against Apple

US Supreme Court allows anti-trust suit against Apple

The iPhone users argued that Apple would be under considerable pressure to lower the 30% commission in a competitive environment. The counter-argument of the company, that app-pricing is an issue between the developers and the consumers, is shaky because a direct transaction occurs between the end-user and the electronic store during a purchase.

Apple said in its statement, "Developers set the price they want to charge for their app and Apple has no role in that". The Supreme Court is allowing consumers to pursue an antitrust lawsuit that claims Apple has unfairly monopolized the market for the sale of iPhone apps.

The court's four liberal justices joined Kavanaugh, one of President Donald Trump's two high court appointees, to reject a plea from Apple to end the lawsuit at this early stage.

While the latest ruling against Apple doesn't guarantee that a lawsuit against Apple can be won, users can definitely sue Apple for overcharging on app purchases.

"We're confident we will prevail when the facts are presented and that the App Store is not a monopoly by any metric", a company statement said. The Supreme Court ruled 5 to 4 that the users can sue Apple. The shares of Apple went down by nearly 6% to the news.




Apple argues it's merely a pipeline between app developers and consumers, and that iPhone users have no claims against Apple under antitrust law and a 1977 Supreme Court decision.

If the 30 percent commission Apple charges to sell through its platform is a monopolistic overcharge, Gorsuch noted, the developers are the ones injured by it. "The vast majority of apps on the App Store are free and Apple gets nothing from them".

Apple said that app developers, not it, set the retail price for apps. "And it raises questions about how the company has wielded that power, amid a wave of anti-tech sentiment that has also prompted concerns about the dominance of other tech behemoths such as Facebook and Amazon", The New York Times reported on Monday.

The plaintiffs, including lead plaintiff Robert Pepper of Chicago, filed the suit in a California federal court in 2011, claiming Apple's monopoly leads to inflated prices compared to if apps were available from other sources.

As iPhone sales continue to tumble, Apple and its shareholders have been looking into improving the company's App Store revenues to compensate. They were supported by 30 state attorneys general, including from Texas, California and NY. Apple had warned that this could pose a threat to e-commerce, a rapidly expanding segment of the USA economy worth hundreds of billions of dollars in annual sales. But Apple asserts that the consumer plaintiffs in this case may not sue Apple because they supposedly were not "direct purchasers" from Apple under our decision in Illinois Brick Co. v. Illinois, 431 U.

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