U.S. Supreme Court Appears 'Open' to Allowing App Store Monopoly Lawsuit vs. Apple to Proceed

U.S. Supreme Court justices "appeared open" to letting a proposed class-action lawsuit proceed against Apple that accuses the company of operating an illegal App Store monopoly, according to Reuters.

app store monopoly
The lawsuit was filed in 2011 by a group of iPhone users who believe Apple violates federal antitrust laws by requiring apps to be sold through its App Store, where it collects a 30 percent commission from all purchases, leading to inflated prices as developers pass on the cost of the commission to customers.

The bottom line is that the iPhone users, led by Chicago resident Robert Pepper, believe that apps would be priced lower outside of the App Store, as Apple's 30 percent cut would not be baked in to prices.

The lawsuit was initially dismissed in 2013 by a California district court, due to errors in the complaint, but the U.S. Court of Appeals for the Ninth Circuit revived the case in 2017. Apple appealed with the Supreme Court, which will rule whether the case should proceed after hearing an hour of arguments today.

From the start, Apple has argued that it doesn't set prices for paid apps, and that charging a 30 percent commission on the distribution of paid apps and in-app purchases does not violate antitrust laws in the United States. Last year, the U.S. Department of Justice filed an amicus brief in support of Apple.

The plaintiffs, meanwhile, are backed by 30 state attorneys general, including those representing Texas, California, and New York. The Supreme Court is expected to make its ruling by June 2019.

Popular Stories

New Things Your iPhone Can Do in iOS 18

20 New Things Your iPhone Can Do in iOS 18.2

Monday December 16, 2024 8:55 am PST by
Apple released iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. Apple has added a handful of new non-AI related feature controls as...
iphone 16 apple intelligence

Apple Drops Plans for iPhone Hardware Subscription Service

Wednesday December 18, 2024 11:39 am PST by
Apple is no longer planning to launch a hardware subscription service that would let customers "subscribe" to get a new iPhone each year, reports Bloomberg's Mark Gurman. Gurman first shared rumors about Apple's work on a hardware subscription service back in 2022, and at the time, he said that Apple wanted to develop a simple system that would allow customers to pay a monthly fee to gain...
iPhone 17 Pro Dual Tone Feature 1

iPhone 17 Pro Rumored to Stick With 'Triangular' Camera Design

Wednesday December 18, 2024 2:36 am PST by
Contrary to recent reports, the iPhone 17 Pro will not feature a horizontal camera layout, according to the leaker known as "Instant Digital." In a new post on Weibo, the leaker said that a source has confirmed that while the appearance of the back of the iPhone 17 Pro has indeed changed, the layout of the three cameras is "still triangular," rather than the "horizontal bar spread on the...
elevation lab airtag battery

Your AirTag's Battery Will Last for Up to 10 Years With Elevation Lab's New TimeCapsule Enclosure

Wednesday December 18, 2024 10:05 am PST by
Elevation Lab today announced the launch of TimeCapsule, an innovative and simple solution for increasing the battery life of Apple's AirTag. Priced at $20, TimeCapsule is an AirTag enclosure that houses two AA batteries that offer 14x more battery capacity than the CR2032 battery that the AirTag runs on. It works by attaching the AirTag's upper housing to the built-in custom contact in the...
apple tv 4k yellow bg feature

New Apple TV Rumored to Launch Next Year With These Features

Tuesday December 17, 2024 9:02 am PST by
The current Apple TV 4K was released more than two years ago, so the streaming device is becoming due for a hardware upgrade soon. Fortunately, it was recently rumored that a new Apple TV will launch at some point next year. Below, we recap rumors about the next-generation Apple TV. Bloomberg's Mark Gurman last week reported that Apple has been working on its own combined Wi-Fi and...
blackmagic vision pro

Blackmagic Debuts $30K 3D Camera for Capturing Video for Vision Pro

Monday December 16, 2024 4:17 pm PST by
Blackmagic today announced that its URSA Cine Immersive camera is now available for pre-order, with deliveries set to start late in the first quarter of 2025. Blackmagic says that this is the world's first commercial camera system designed to capture 3D content for the Vision Pro. The URSA Cine Immersive camera was first introduced in June, but it has not been available for purchase until...
mac pro creativity

Apple Launched the Controversial 'Trashcan' Mac Pro 11 Years Ago Today

Thursday December 19, 2024 7:00 pm PST by
Apple launched the controversial "trashcan" Mac Pro eleven years ago today, introducing one of its most criticized designs that persisted through a period of widespread discontentment with the Mac lineup. The redesign took the Mac Pro in an entirely new direction, spearheaded by a polished aluminum cylindrical design that became unofficially dubbed the "trashcan" in the Mac community. All of ...
iPhone 17 Slim Feature

'iPhone 17 Air' With 'Major' Design Changes and 19-Inch MacBook Detailed in New Report

Sunday December 15, 2024 9:47 am PST by
Apple is planning a series of "major design" and "format changes" for iPhones over the next few years, according to The Wall Street Journal's Aaron Tilley and Yang Jie. The paywalled report published today corroborated the widely-rumored "iPhone 17 Air" with an "ultrathin" design that is thinner than current iPhone models. The report did not mention a specific measurement, but previous...

Top Rated Comments

jonblatho Avatar
79 months ago
Alternate headline:

People with Little or No Understanding of Technology Demonstrate Little or No Understanding of Technology
Score: 49 Votes (Like | Disagree)
JeffPerrin Avatar
79 months ago
Basis of this case is so opposite of what actually happened: the race to the bottom in terms of app pricing.

And for those wondering, some of what Apple's 30% pays for for devs:

- Credit card transactions (incl. associated fees)
- Managing sales tax - local and international (!!!)
- Distribution (server and bandwidth costs)
- Sales and installation analytics
Score: 39 Votes (Like | Disagree)
jclardy Avatar
79 months ago
That 30% commission is pretty hefty but allowing apps to be sold outside the appstore and installed on iPhones without being jailbroken would pretty much ruin the edge Apple has on security and privacy it would seem.
I disagree. Just make it like macOS where you have to explicitly allow unsigned code to run on your computer. And leave it off by default.
Score: 34 Votes (Like | Disagree)
barkomatic Avatar
79 months ago
That 30% commission is pretty hefty but allowing apps to be sold outside the appstore and installed on iPhones without being jailbroken would pretty much ruin the edge Apple has on security and privacy it would seem.
Score: 29 Votes (Like | Disagree)
AppliedVisual Avatar
79 months ago
As an app developer, all I can say is that the App Store is a win/win situation for developers and Apple. I also don't think the customer is impacted negatively in any way. The App Store offers assurances on some level that the apps are checked and monitored to be free from malware and they have a singular purchase and billing source and way to manage all their apps. Prices are hardly over-inflated, in fact software/app prices are at all-time lows. I would also argue that the law suit was filed a bit over 8 years ago and is now starting to proceed... Timing on this is now awkward and the suit needs to be updated drastically or dropped altogether. Google has the same "monopoly" with their store as well. If anyone wants to go after illicit software practices or App Store shenanigans of sorts, they need to take a look at the in-app purchase models being used by many developers. Some of these are quite predatory and targeted at kids.

FWIW, as most of my app development is corporate in nature, I have to say that not everything must be distributed through the App Store. There are enterprise deployment options. While this doesn't change things for Joe Consumer, it does mean that when a company hires me to create an app for internal use, we can develop, test and deploy internally without ever touching the App Store and I can turn the app over to them at the end of the contract where they can continue to administer and deploy as they see fit.

Ultimately I see this suit going nowhere. SCOTUS has historically sided with multiple companies accused of the same sort of monopoly. Apple created the platform, they created their ecosystem and there are other alternatives out there. Apple has already won a similar suit regarding iTunes music distribution and AT&T and Verizon have both won similar suits in the past with their own services and music offerings (although on a much smaller scale) before smartphones/ iPhone came along.

And if this suit progresses through, then we as a collective society may as well file suit against Microsoft, Google, Sony, Nintendo, and so on... As they all have their "app stores" for various devices or systems. I can't just download any app/game I want and run it on my Nintendo Switch -- nope, got to get it from the eShop. PlayStation Store? Yep. Xbox Live? Yep.
Score: 19 Votes (Like | Disagree)
jayducharme Avatar
79 months ago
I have a suggestion for Pepper: get an Android phone.
Score: 18 Votes (Like | Disagree)