The U.S. Supreme Court will hear arguments in an antitrust case on Monday that accuses Apple of breaking antitrust laws by monopolizing the market for iPhone apps, resulting in customers having to pay more than they should, reports Reuters.
A key issue in the case is the 30% cut that Apple takes from apps sold on the App Store which has resulted in higher prices for some applications. Based on a 1977 ruling, Apple says that only those directly overcharged have a right to damages for anti-competitive conduct. The judges will decide if consumers are able to sue Apple for damages even though they are indirect victims who paid an overcharge passed on by developers.
Apple, which is appealing a lower court decision that revived the proposed consumer class-action lawsuit, says no, citing a decades-old Supreme Court precedent. The Cupertino, California-based technology company said that siding with the iPhone users who filed the lawsuit would threaten the burgeoning field of e-commerce, which generates hundreds of billions of dollars annually in U.S. retail sales.
If the court sides with Apple, many tech platforms would start arguing that consumers don't have standing to bring a case against them, says Sandeep Vaheesan, legal director for the Open Markets Institute.
“Uber could say, we’re just providing communication services to ride-sharing drivers,” Vaheesan said, referring to the popular ride-sharing company. “If there’s an antitrust issue, the drivers can bring a claim but passengers do not have standing.”
More details in the full report linked below...
Read More
A key issue in the case is the 30% cut that Apple takes from apps sold on the App Store which has resulted in higher prices for some applications. Based on a 1977 ruling, Apple says that only those directly overcharged have a right to damages for anti-competitive conduct. The judges will decide if consumers are able to sue Apple for damages even though they are indirect victims who paid an overcharge passed on by developers.
Apple, which is appealing a lower court decision that revived the proposed consumer class-action lawsuit, says no, citing a decades-old Supreme Court precedent. The Cupertino, California-based technology company said that siding with the iPhone users who filed the lawsuit would threaten the burgeoning field of e-commerce, which generates hundreds of billions of dollars annually in U.S. retail sales.
If the court sides with Apple, many tech platforms would start arguing that consumers don't have standing to bring a case against them, says Sandeep Vaheesan, legal director for the Open Markets Institute.
“Uber could say, we’re just providing communication services to ride-sharing drivers,” Vaheesan said, referring to the popular ride-sharing company. “If there’s an antitrust issue, the drivers can bring a claim but passengers do not have standing.”
More details in the full report linked below...
Read More