Apple Sued For App Store Monopoly; Case To be Held This Week
Nov. 25, 2018Apple will head to the US Supreme Court this week to block a group of customers from suing the tech giant for monopoly abuse, media has reported.
The company is battling a group of iPhone owners who claim Apple forces them to overpay for apps by forbidding rivals to the multibillion-dollarApp Store.
If Apple fails, thebusiness model of the App Store, one of the company’s fastest-growing and most profitable divisions, could be threatened, it added.
The customers argue that its sizeable commission is evidence of the company exploiting its monopoly position over iPhone users. They argue that “iPhone consumers nationwide have paid (Apple) hundreds of millions of dollars more for iPhone apps than they would have paid in a competitive market“.
Apple is seeking to dismiss the case by appealing to a Supreme Court ruling made in 1977 that said only “direct purchasers” can seek damages for antitrust abuse.
The company argues that because theapp developers themselves set the price of appsin the App Store and not Apple, iPhone users are purchasing the apps from the developers directly.
Its opponents claim that because Apple sets the rules about the App Store, such as the minimum price, it is effectively selling the apps on to users.
The Supreme Court is due to hear the arguments on Monday, although it is likely to take months until its judges announce any decision.
