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The Supreme Court has decided that Apple can be sued for monopolizing the iOS App Store. In an anti-trust lawsuit filed back in 2011, iPhone users alleged the tech giant was abusing its position by limiting app sales to a single marketplace and profiting immensely from it: Apple receives a 30% commission from each sale, which the plaintiffs say is passed on to users.
Apple tried to get the lawsuit dropped by arguing that it’s the developers who are paying the commission, so only devs should be allowed to sue. Many of the justices didn’t see it that way, however, with the court ultimately ruling 5-4 against the company. It isn’t clear whether they will go to trial or just settle.
“Apple’s line-drawing does not make a lot of sense, other than as a way to gerrymander Apple out of this and similar lawsuits,” Kavanaugh wrote. Shares of Apple, already battered by trade concerns, were down 5%, lagging the broader market. The result was widely expected after arguments in November in the case, Apple v. Pepper, during which the justices seemed skeptical of Apple’s arguments.
Apple tried to get the lawsuit dropped by arguing that it’s the developers who are paying the commission, so only devs should be allowed to sue. Many of the justices didn’t see it that way, however, with the court ultimately ruling 5-4 against the company. It isn’t clear whether they will go to trial or just settle.
“Apple’s line-drawing does not make a lot of sense, other than as a way to gerrymander Apple out of this and similar lawsuits,” Kavanaugh wrote. Shares of Apple, already battered by trade concerns, were down 5%, lagging the broader market. The result was widely expected after arguments in November in the case, Apple v. Pepper, during which the justices seemed skeptical of Apple’s arguments.