A PYMNTS Company

US: Apple takes app monopolization claims to SCOTUS

By  |  August 12, 2018
On Friday, Apple urged the US Supreme Court in an opening brief to toss a proposed consumer class action claiming the technology giant illegally monopolized the iPhone app market, arguing that it acts merely as an agent for developers who set their own prices.

A class of consumer purchasers of iPhone apps alleged that Apple has monopolized the market for iPhone apps. The complaint alleges that Apple charged a 30% markup on all apps sold through the app store, and that the app store is the only place where iPhone apps can be sold. In the district court, Apple moved to dismiss the complaint on the ground that the consumers lacked antitrust standing.

Apple argued that app developers, not Apple, were the ones selling the apps and that Apple merely collected money and “passed on” the allegedly supracompetitive price charged by the developers. According to Apple, the plaintiffs’ grievance is with the price set by the app developers, not with any action taken by Apple.
Full Content: Law 360, Supreme Court

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.