Apple defends its iPhone app fees in Court

Date:

Trending

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.

- Advertisement -

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.

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.

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 -

Support our independent journalism PayPal (Outside India) For PayU (For Indian Readers).

Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

12 Eye-Popping Hacks to Make Your Next Business Presentation Sparkle

Business presentations are often necessary to gain new clients and showcase what it is you can offer, but more often than not, they end...

The Long-Term Power of Investing: Selecting Undervalued Industries

Investing can seem overwhelming, especially for beginners, as the numerous options and strategies available can make it easy to feel unsure about where to start. However, one time-tested method that stands out is long-term investing—focusing on companies and industries with the potential for growth...

The Impact of EdTech on Student Outcomes in Higher Education

The introduction of interactive whiteboards in the early 1990s marked a major shift in...

Meta Legal Head Offloads Shares worth $577K

Meta Platforms Inc.’s (NASDAQ: META) Chief Legal Officer, Jennifer Newstead, has sold 921 shares,...

HR Chief Amy Coleman Reports Over 46,000 Microsoft Shares in SEC Filing

Microsoft (NASDAQ: MSFT) Chief Human Resources Officer, Amy Coleman, has reported her stock holdings...

BGC Group raises $700 Mn in bond sale to refinance debt

BGC Group, Inc. (NASDAQ: BGC) has finalized a $700 million private offering of senior...

The Ultimate Guide to Choosing and Using Fonts in Your Design Projects

Fonts play a crucial role in every design project, from branding and web design...

Predictive Analytics: The Key to Supply Chain Resilience

In today’s interconnected global economy, supply chains are the lifeblood of businesses, weaving intricate...

Shell Executive Robin Mooldijk Sells €1.69 Mn in Shares

Shell plc’s Projects & Technology Director, Robin Mooldijk, has offloaded 50,000 shares in the company, amounting to approximately €1.69 million. According to the filing, the...

Empowering Growth: Boosting the Robotics Sector with Targeted Support

India's robotics sector is emerging as a key area of technological progress, driving innovation...

Software and Technology Changing the Industry

The advent of software and technological advancements has been a game-changer across various industries....

RP-Sanjiv Goenka’s Firstsource Opens ANZ HQ and AI Lab in Melbourne

Firstsource Solutions Limited (NSE: FSL, BSE:532809), an RP-Sanjiv Goenka Group company, today announced the...
00:02:53

Canada, Australia Partner to Build $6 Bn Arctic Radar System

In a bid to enhance Arctic and national security, Canada's Prime Minister Mark Carney...

Meta Chief Legal Officer Jennifer Newstead Offloads Shares as Part of Trading Plan

According to regulatory filings, Jennifer Newstead, Chief Legal Officer at Meta Platforms, Inc. (NASDAQ: META), has divested 921 shares of the company’s Class A...

Nvidia Director Aarti Shah to Sell Shares Worth $2.37 Mn

Aarti S. Shah, a director at NVIDIA Corporation (NASDAQ: NVDA), has filed a notice with the Securities and Exchange Commission (SEC) to sell 20,000 shares of the company’s common stock under Rule 144. According to the Form 144 filing, submitted on March 20, 2025, Shah...

Alphabet Board Member Frances Arnold Increases Stake Following Dividend Allocation

According to a recent regulatory filing, Frances Arnold, a board member at Alphabet Inc.,...

Alphabet COA Amie Thuener O’Toole Increases Stock Holdings

In a filing with the U.S. Securities and Exchange Commission (SEC), Alphabet Inc.’s (NASDAQ...

Google Acquires Wiz for $32 Billion in All-Cash Deal

Google LLC, a subsidiary of Alphabet Inc. (NASDAQ: GOOG, GOOGL) has signed a deal...

The Sustainability Imperative: How IT Distribution Is Driving Green Tech Adoption

In today's day and time sustainability is no longer just a corporate commitment, it...

The Future of Digital Payments and Cybersecurity Challenges

The future of digital payments is evolving rapidly, driven by technological advancements, changes in...

How a Money Back Policy Can Be a Smart Financial Choice?

Creating financial security involves strategic planning because investment decisions form one of the essential...

From Startup to Success: Essential Steps for Landscaping Entrepreneurs

Starting a landscaping business is so exciting, blending creativity with the reward of transforming...
00:02:23

‘Canada Ripping Us’: US President Trump Criticizes High Tariffs on Dairy and Lumber

U.S. President Donald Trump on Friday slammed Canada’s high tariffs on American dairy and...

Trade War: Canadian PM Justin Trudeau Announces 25% Tariffs On US Imports

Ottawa: Canadian Prime Minister Justin Trudeau on Wednesday announced a 25% tariff on U.S....

RP-Sanjiv Goenka’s Firstsource Opens ANZ HQ and AI Lab in Melbourne

Firstsource Solutions Limited (NSE: FSL, BSE:532809), an RP-Sanjiv Goenka Group company, today announced the...

Elon Musk’s X Sues Indian Govt Over Content Regulation Clash

X Corp, an Elon Musk-owned social media firm, sued the Indian government in the...

Why Smart Cities Are the Future of Water Conservation

Water conservation has become an important factor due to climate change and worsened water...

Alphabet CEO Sundar Pichai Increases Stocks Holdings Amid Dividend Adjustment

According to a regulatory filing with the U.S. Securities and Exchange Commission (SEC), Alphabet...

Layer PR Wins SME News UK Awards, Expands to Bengaluru

Layer PR, a global public relations firm owned by TechGraph, has secured two major...
00:02:53

Canada, Australia Partner to Build $6 Bn Arctic Radar System

In a bid to enhance Arctic and national security, Canada's Prime Minister Mark Carney...

‘Canada Ripping Us’: US President Trump Criticizes High Tariffs on Dairy and Lumber

U.S. President Donald Trump on Friday slammed Canada’s high tariffs on American dairy and...

Trump Defends Elon Musk Plan for Federal Job Cuts; Govt Spending ‘Bloated’

Following a meeting with Elon Musk and senior cabinet members, U.S. President Donald Trump...

Trade War: Canadian PM Justin Trudeau Announces 25% Tariffs On US Imports

Ottawa: Canadian Prime Minister Justin Trudeau on Wednesday announced a 25% tariff on U.S....