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Report: Supreme Court to Take Up Apple App Lawsuit

By Andy Szal | June 18, 2018

The U.S. Supreme Court will consider allegations that Apple unfairly monopolized the mobile app market for its iOS operating system.

Reuters reports that the high court on Monday agreed to take up Apple’s bid to be removed from a proposed class-action lawsuit filed by iPhone buyers, who took issue with the commissions paid to the tech giant on sales through its App Store.

The lawsuit contended that Apple effectively maintained a monopoly on messaging platforms, games and other apps, which led to higher prices for iPhone users. The company earns a 30 percent commission on apps in the App Store, but prices are set by the app developers rather than the company.

Apple argued that the plaintiffs lacked legal standing to bring the case, and a federal judge in California agreed before an appeals court revived the lawsuit last year. The Justice Department, which sided with Apple, urged the Supreme Court to take up case.

The report added that the matter could potentially broaden antitrust issues faced by tech companies, particularly marketplace sites where sellers set prices and companies earn commissions. Amazon is likely the most notable such company, but others could include auction site eBay and ticket reseller StubHub.


Filed Under: Apps

 

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