Apple defends its iPhone app fees in Court

Date:

Trending

- Advertisement -

Apple is at the Supreme Court to defend the way it sells apps for iPhones against claims by consumers that the company has unfairly monopolized the market.

The justices are hearing arguments Monday in Apple’s effort to end an antitrust lawsuit that could force the iPhone maker to cut the 30 percent commission it charges software developers whose apps are sold exclusively through Apple’s App Store. A judge could triple the compensation to consumers under antitrust law if Apple ultimately loses the lawsuit.

- Advertisement -

Apple says it doesn’t own the apps or sell them. That’s the responsibility of software developers.

- Advertisement -

But the lawsuit says the Cupertino, California-based company exerts a lot of control over the process, including a requirement that prices end in .99. And iPhone apps are only available through the App Store.

The issue for the Supreme Court is whether Apple can even be sued about the apps, given prior high court rulings in antitrust cases. In other cases, the justices have said there must be a direct relationship between the seller and a party complaining about unfair, anticompetitive pricing.

- Advertisement -

Consumers can choose from among more than 2 million apps, up from the 500 apps that were available when Apple created the App Store in 2008. “The phrase ‘there’s an app for that’ is now part of the popular lexicon,” Chief Justice John Roberts noted in a 2014 decision limiting warrantless searches of cellphones by police. Apple has trademarked the phrase.

But the company says the popularity of software for iPhones and its App Store shouldn’t obscure that consumers buys apps from developers, not Apple.

“Apple is a sales and distribution agent for developers,” Apple’s lawyers said in a Supreme Court filing. “Apple’s core argument has always been that any injury to consumers necessarily depends on developer pass-through decisions, since Apple does not set apps prices.”

Apple takes a 30 percent commission on the sale of apps, but it says any complaints about its pricing structure should come from developers, not consumers, since it’s the developers who pay the commission. The Trump administration is backing Apple at the high court.

A trial court initially dismissed the lawsuit, but the 9th US Circuit Court of Appeals revived it.

Lawyers for the consumers urged the high court to allow the lawsuit to proceed. Consumers “pay the monopoly prices for apps directly to Apple through its App Store,” the lawyers wrote in their Supreme Court brief. That direct relationship makes Apple the proper target of an antitrust lawsuit, they said.

A victory for Apple could severely restrict consumers’ ability to sue over antitrust violations even though Congress envisioned such lawsuits “would form a central component of enforcement of the antitrust laws,” warned 18 scholars of antitrust law in a Supreme Court filing.

A decision in Apple Inc. v Pepper, 17-204, is expected by late spring.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -
Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

CredResolve Secures Pre-Series A round funding from Merak Ventures & Others

CredResolve, an India-based AI-powered debt collections infrastructure company, has raised a pre-Series A funding round led by Merak Ventures, with participation from existing investors...

How to Avoid Distracted Driving on the Road

Driving on today's roads requires utmost attention and care. As automobiles evolve with advanced technology, the risk of distraction increases accordingly. This article delves into proven methods to avoid distractions, ensuring a safer journey for all road users. We'll explore strategies around minimizing phone...

Closing India’s Employability Gap with Tech-First Hiring Models

India’s employability challenge is often framed as a skill gap problem. But that’s only...

Vanguard Group Reports Nvidia Stock Below 5 Percent

The Vanguard Group has reported that it now holds less than a 5% stake...

Vanguard Group Reports Ownership Below 5% in Apple Following Internal Realignment

The Vanguard Group has reported that it now holds less than a 5% stake...

Concord Control Systems Secures INR 84 Cr Order From Indian Railways For Loco Wireless Control Systems

Concord Control Systems Limited (BSE: CNCRD), a manufacturer of embedded electronic systems and a...

VES College of Architecture’s Dr. Prof. Anand Achari on Preparing Students for Real Urban Challenges with AI and Design Thinking

Speaking with TechGraph, Principal of VES College of Architecture (VESCOA), Dr. Prof. Anand Achari,...

The Future of Crypto Investing Is on Autopilot

When most people think about cryptocurrency investing, they envision charts fluctuating rapidly, traders responding...

Vanguard Reports Stake Below 5% in Google’s Alphabet

The Vanguard Group has reported that it now holds less than a 5 percent stake in Alphabet (NASDAQ:GOOGL) following an internal realignment of its...

How NBBL’s New Technology Stack Is Transforming the Future of Payments

India’s digital payments ecosystem has reached a scale that very few countries in the...

NVIDIA CEO Jensen Huang Reports 437,908 Shares Disposal at $181.93 Each

Jensen Huang, President and CEO of Nvidia Corporation (NASDAQ:NVDA), has reported a series of...

Peak XV Partners Closes $1.3 Bn in Fresh Capital to Back Startups Across India and APAC

Peak XV Partners (formerly Sequoia Capital India & SEA) has closed $1.3 billion in...

The Future of Shopping: How Apps Are Merging Beauty with Basics

Shopping in India is evolving very fast. Instead of opening different apps for different...

How Anganwadi’s Can Transform India’s Education Foundation

If you step into an Anganwadi on any given morning, what you’ll see is more than a “pre-school.” You’ll see children curious, expressive, sometimes...

Beyond Liveness: Building Cryptographically Verifiable Biometric Integrity for the Enterprise

Indian Enterprises are facing a strategic inflection point in the volatile global digital markets today. There is a heightened need for mitigating risk alongside ease of doing business. Adoption of Cryptographically Verifiable Biometrics with ‘Passwordless Authentication’ as a solution is the only way to...

Deeptech Startup Newtrace Secures $6.3 Mn in Pre-Series A Round

Bengaluru-based deeptech startup Newtrace has raised $6.3 million (INR 56.93 crore) in a pre-Series...

Mozark Snaps $40 Mn In Series B Round Led by IFC and RMB Capitalworks

Mozark, a Singapore-based company specializing in digital experience testing and measurement, has raised $40...

Nebius Gets Approval for 1.2 GW AI Factory Campus in Missouri

Nasdaq-listed AI company, Nebius (NBIS), said the Independence City Council has approved a Chapter...

From vineyard to bottle: How blockchain improves trust and sensing in the wine value chain

The wine sector faces increasing consumer demand for transparency, authenticity, and reliable information about...

Why India’s Next Cloud Boom Is Coming from Tier-2 Cities

Historically, the story of India's cloud adoption has been focused on the metro cities...

Is India Ready for a Smart Treasury? A Look at Adoption Barriers and Opportunities

Across India, businesses hold thousands of crores in current accounts that earn no interest....

Creator Commerce Platform Wishlink Secures $17.5 Mn in Series B round

India-based creator commerce platform Wishlink has raised $17.5 million in a Series B funding...

Brazil and South Korea Sign Stragetic Deals Across Trade, Health & Tech

In a move aimed at strengthening economic and strategic ties, Brazilian President Luiz Inácio...

B2B Logistics platform Mojro Draws $3Mn for IAN Alpha Fund & Others

Bengaluru-based B2B logistics platform Mojro has raised $3 million in a Series A funding...

Peak XV Partners Closes $1.3 Bn in Fresh Capital to Back Startups Across India and APAC

Peak XV Partners (formerly Sequoia Capital India & SEA) has closed $1.3 billion in...

Role of Agentic AI in transforming the real estate landscape

The real estate industry involves a high-stakes ecosystem driven by shifting supply-demand dynamics, regulatory...

How to Extend Vehicle Lifespan With Proper Maintenance

Extending the lifespan of your vehicle is not only cost-effective but also beneficial for...

Understanding Common Car Problems and How to Prevent Them

Keeping your vehicle in top condition requires more than just regular washing or occasional...

From Browsing to Buying: How Multi-Modal AI Is Turning Discovery Into Decision-Making

The digital journey, starting from discovery to decision, has been notably discontinuous through time....

The Future of Shopping: How Apps Are Merging Beauty with Basics

Shopping in India is evolving very fast. Instead of opening different apps for different...

Brazil and South Korea Sign Stragetic Deals Across Trade, Health & Tech

In a move aimed at strengthening economic and strategic ties, Brazilian President Luiz Inácio...

Amazon India Opens 1.1 Million Sq Ft Campus in Bengaluru

Amazon announced the opening of its second-largest office in Asia with the launch of...

B2B Logistics platform Mojro Draws $3Mn for IAN Alpha Fund & Others

Bengaluru-based B2B logistics platform Mojro has raised $3 million in a Series A funding...