Apple defends its iPhone app fees in Court

Date:

Before Article Content · 728×90
Advertise Here

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.

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

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.

- Advertisement -

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.

Stay ahead of the curve, every day.

A daily briefing covering news, interviews, and the trends driving the world forward. Curated for readers who want news, not noise.

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

Organic BSC Volume Bot: What Timing Variation Actually Changes

Timing is one of the easiest automation details to overlook and one of the quickest ways to produce an unhelpful test. On BNB Smart...

The AI Studio Economy: SimplifyGenAI’s Gurleen Khurana on Redefining Creative Production

Speaking with TechGraph, Gurleen Khurana explains how generative AI is transforming brand storytelling, creative production, and the rise of integrated AI studios.

StationPC PA100 Pro: The Next-Gen Portable NAS Storage Solution for On-the-Go Professionals

The next-generation PocketCloud (model: PA100 Pro) portable NAS from StationPC has officially been unveiled,...

The Borderless Startup: FinStackk CGO Nithin Reddy on Simplifying Financial Operations for Global Founders

Speaking with TechGraph, Nithin Reddy, Co-founder & Chief Growth Officer at FinStackk, discussed how...

Why Do Most Enterprise AI Projects Never Make It Past the Pilot Stage?

Conceiving, developing, and implementing AI projects an optimum mix of creativity, dedication, and perseverance.

How Mixed-Use Ecosystems Will Shape the Next Decade of Urban India

India's urban growth story is entering a decisive phase. By 2036, nearly 600 million...

How Generative AI Could Reshape Airline Distribution and Travel Retailing

Airline distribution is entering a new phase. For decades, the industry has relied on...

How AI Is Quietly Turning Interior Design into a Predictive Science

Predictive science uses historical data, behavioral trends, simulations, and machine learning models to predict...

The New Collateral in Lending Isn’t an Asset; It’s a Citizen’s Consent

Old habits die hard, and few habits in Indian finance have died harder than our collective attachment to the self-attested photocopy. For three decades,...

AI That Serves: Impact AI Foundry’s Arjun Balaji on Making Artificial Intelligence Accessible for Nonprofits

Speaking with TechGraph, Arjun Balaji, Co-Founder and Programme Director of Impact AI Foundry, discussed...

How AI Is Building India’s Next-Generation Emergency Mobility Infrastructure

Imagine this. A customer is stranded on the roadside due to a vehicle breakdown...

Top No-KYC Crypto Casino Sites in 2026

Most online casinos demand a lot of personal information from you before you can...

Why Indian Men Are Quietly Moving Away From Fast Fashion

When a man opens his wardrobe, stares at a rail of clothes, and realises...

How changing lifestyles are driving demand in home improvement products

The parking lot outside a home interiors store in Bengaluru's Marathahalli is full by ten on a Sunday morning. Not full of contractors or...

Why Indian Business Still Runs on Spreadsheets and WhatsApp for Treasury

India is home to one of the world's fastest-growing fintech ecosystems, projected to reach $421 billion by 2029. As the third-largest fintech hub globally, it processes billions of real-time transactions and over 17,000 crore UPI payments annually, fundamentally reshaping how consumers and small businesses...

The New Age of Digital Assets: How Blockchain Is Redefining Financial Inclusion

Innovation is changing the nature of economic participation and making it more inclusive, especially...

The Efficiency Gap That Will Reshape Finance by 2030

Here is the number that should be keeping every CFO awake right now: 97%...

Nexchain Publishes New Roadmap as $0.06 Token Stage Continues

Nexchain has unveiled its updated development roadmap, providing the community with a clearer view...

Why Startups Are Turning to Virtual CFOs for Smarter Growth

​For a long time, finance leadership in startups followed a predictable path. Founders managed...

Nexchain Rebuild Story Puts AI Layer 1 Development Back on the Crypto Presale Radar

Nexchain AI has brought its rebuild story back into focus as its AI Layer...

From IP to Global Leadership: Aum Ventures’ Chetan Mehta on India’s Next Deeptech Breakout Companies

Speaking with TechGraph, Chetan Mehta, Founding Partner at Aum Ventures, outlined why deeptech remains...

PatexOne: Could This Platform Be Smarter Than Your Impulses?

Australian investors are used to platforms that shout about leverage and “opportunity”. PatexOne takes...

The HiPCO Advantage: NoPo Nanotechnologies’ Gadhadar Reddy on Scaling SWCNT Manufacturing for Emerging Industries

Speaking with TechGraph, Gadhadar Reddy, Co-Founder and CEO of NoPo Nanotechnologies, discussed how manufacturing...

India’s Cloud Cost Crisis: Why Startups Are Rethinking Their Tech Stack

Over the last ten years, startups in India have experienced an incredible boom driven...

Top No-KYC Crypto Casino Sites in 2026

Most online casinos demand a lot of personal information from you before you can...

“Budget should focus on reducing taxes on capital gains,” Says Abhishek Gupta of Hex N Bit

Speaking in the upcoming Union Budget 2021, Abhishek Gupta, Founder, and CEO, Hex N...

“China is a Global thief” Rep. Tom Rice on Uyghur Forced Labor Prevention Act

Speaking at the House on Uyghur Forced Labor Prevention Act, Rep. Tom Rice (R-SC)...

The Role of Predictive Technology in Creating Sustainable Infrastructure Ecosystems

Infrastructure development today is no longer just about building faster or expanding bigger. The...

The Reliability Equation: Trev Mobility CEO Naveen Gupta on Building Trust in Premium Electric Ride-Hailing

During an interview with TechGraph, Naveen Gupta, Founder & CEO of Trev Mobility, highlighted...

Why Indian Men Are Quietly Moving Away From Fast Fashion

When a man opens his wardrobe, stares at a rail of clothes, and realises...

Key differences between a burner phone & prepaid phone

You may have heard both terms mentioned when it comes to protecting your identity....

Alphabet Discloses $2.14 Billion in Public Equity Holdings as of June 30

Alphabet Inc. disclosed $2.14 billion in equity securities held across 39 positions as of...

India to generate $100 bn from telephonic investments

India expects to attract $100 billion in investments in the telecom sector, a union...