Apple's App Store Legal Battle Heads To The Supreme Court

Case against Apple over app commission likely to proceed

But the plaintiffs appealed and the Ninth Circuit Court of Appeals ruled that they had standing to sue Apple. The case began in 2011 and was revived past year. Apple brought in an estimated $11 billion in revenue during 2017 from the App Store thanks to that 30 percent cut, with developers taking home the remaining 70 percent. The U.S. Supreme Court hears argument Monday on whether customers can sue by claiming that such an arrangement amounts to a monopoly that jacks up prices. "From my perspective, I've just engaged in a one-step transaction with Apple", she said.

Company attorney Daniel Wall contended that under Supreme Court precedent, the app developers are the ones setting prices charged consumers.

The justices are involved because they have to settle a broader question: Can consumers even sue for damages in an antitrust case like this one?

Bush-appointed Justice Samuel Alito also looked to be leaning towards siding with the plaintiffs, seeking out the portions of the Appeals Court decision that found the case to be about Apple's monopoly control of the App Store- a critical part of the case against Cupertino.

His comments could align him with justices who would allow the suit to proceed. A federal judge in Oakland threw out the suit, saying the consumers were not direct purchasers because the higher fees they paid were passed on to them by the developers.

Trump strongly defends use of tear gas on caravan migrants
President Trump said he would not hesitate to close the border altogether if he feels the USA might be losing "control". Human rights and immigration advocates called the use of pepper spray on women and children inhumane.

"Apple's intentionally closed system prevents competition", says David Frederick, a lawyer representing the customers, "which enables the App Store to collect a higher price than if Apple were forced to entice app seekers in a competitive market". The company's antitrust violation, he said, was the App Store itself.

The iPhone users, including lead plaintiff Robert Pepper of Chicago, filed the suit in a California federal court in 2011, claiming Apple's monopoly leads to inflated prices compared to if apps were available from other sources.

But Apple's critics say its control over the App Store makes it unlike other internet marketplaces.

Apple intends to argue that they are legally permitted to take the commission because they provide developers with access to users.

Software developers say that outcome would disrupt similar online marketplaces that operate between app creators and customers. At that time, Judge Yvonne Rogers ruled in favor (PDF) of Apple, reasoning that end users of the applications were indirect customers are therefore could not be the ones to sue under United States antitrust law. Some liberal and conservative justices sharply questioned an attorney for Apple and U.S. Solicitor General Noel Francisco, who argued on behalf of the administration on the company's side, over their argument that the consumers were not directly affected by purchasing the apps from Apple.

Related news:

Hot News

isis-killer-beheading-video-story-top India Slams Pakistani PM Imran Khan for His ‘Pakistan Wants Peace’ Comment
Nov 29, 2018 - 06:32
The Kartarpur corridor aims to ease travel for Indian pilgrims visiting one of the holiest sites of the Sikh faith in Pakistan. Imran Khan said that there have been "mistakes on both sides" and asserted that the two sides should not live in the past.

isis-killer-beheading-video-story-top MLB PAC Wants Money Back After Last-Minute Donation To Hyde-Smith
Nov 28, 2018 - 04:59
The above-linked article (read it in full) notes that her official bio "conspicuously" omits mention of her high school years. Hyde-Smith said the "public hanging" comment was "an exaggerated expression of regard" for a fellow cattle rancher.

isis-killer-beheading-video-story-top Race Roils Final Senate Contest of 2018 Midterms in Mississippi
Nov 28, 2018 - 03:30
An election victory would see Espy become the first African-American U.S. senator from MS since Reconstruction. President Donald Trump did not address incendiary remarks made by interim Sen.

isis-killer-beheading-video-story-top General Motors shuttering plants, cutting 15% of workforce
Nov 28, 2018 - 03:28
Its North American salaried workforce, including engineers and executives, will shrink by 15 percent, or about 8,000 jobs. For instance, GM plans to add hundreds of workers at its pickup truck assembly plant in Flint, Michigan, Morrissey said.

isis-killer-beheading-video-story-top Red Dead Online Beta Not Working For Xbox One Players, Rockstar Confirms
Nov 28, 2018 - 02:45
The beta is being rolled in phases, with Ultimate Edition buyers and active players getting earlier access than others. In the meantime, Red Dead Redemption 2 is now available for PlayStation 4 and Xbox One , starting at $59.99 .

isis-killer-beheading-video-story-top Paul Manafort Breached Plea Deal by Lying to Mueller’s Team, Prosecutors Say
Nov 27, 2018 - 08:27
Mueller's joint status report noted that both sides called for a sentencing date to be set without delay . Prosecutors said Gates, who also pleaded guilty, is cooperating in "several ongoing investigations".

isis-killer-beheading-video-story-top Mumbai remembers 26/11 martyrs on 10th anniversary of attacks
Nov 27, 2018 - 08:00
India blamed the attack on the Pakistani militant group Lashkar-e-Taiba, throwing relations between the nuclear-armed neighbours into a tailspin.

isis-killer-beheading-video-story-top Magnificent Mary On Gold Spree
Nov 27, 2018 - 07:45
Talking about her record, a joyous Mary told reporters, "I want to dedicate the medal to all the people behind my hard-work". There was little Mary Kom could do to stop her tears. "First of all, I would like to thank all my fans".

isis-killer-beheading-video-story-top GM to close Oshawa plant, four US plants
Nov 27, 2018 - 07:17
GM plans to halt production next year at three assembly plants - Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario. The company said this is part of a plan that restructures to cut costs and focus more on autonomous and electric vehicles.

isis-killer-beheading-video-story-top Trump's government seeks quick ruling on transgender troops case
Nov 27, 2018 - 07:13
Donald Trump has asked the Supreme Court to fast-track a review of his administration's proposed transgender military ban. The Trump administration has taken an aggressive posture when lower courts have ruled against it on important issues.

isis-killer-beheading-video-story-top Nintendo Switch, Red Dead 2, More In Walmart Cyber Monday Gaming Deals
Nov 27, 2018 - 05:29
The Apple Store may not be worth it: The Apple Store is bundling gift cards when you buy older models at full price. Remember: You'll get an extra 15% off almost everything Target sells today, including the items on sale below.

isis-killer-beheading-video-story-top US asks allies to shun Huawei equipment, WSJ reports
Nov 25, 2018 - 16:46
According to the report, the US government is now requesting from its allies that they stop using Huawei products as well. In August, Australia banned Huawei and ZTE from providing 5G technology there due to national security concerns as well.

isis-killer-beheading-video-story-top The Removal of Tumblr iOS App Might Be Due To Child Pornography
Nov 25, 2018 - 15:20
But it appears that new, unknown images of child pornography were uploaded to Tumblr sometime last week or earlier that weren't flagged as such.

isis-killer-beheading-video-story-top Summer signing hugs Klopp in Liverpool FC training session
Nov 25, 2018 - 15:04
Liverpool next return to European duty when they face Paris Saint-Germain in a Champions League crunch clash on Wednesday. On the other side, we had to stay stubborn as well, we had to pass, to be patient but stay lively and accelerate.

isis-killer-beheading-video-story-top India issues swift condemnation of attack on Chinese consulate in Pakistan
Nov 25, 2018 - 14:04
Two separate terror attacks took place in Pakistan on Friday morning, killing at least 27 people, and wounding over 20 people. Police told Al Jazeera that one of the three attackers have been killed, and that suicide vest and weapons were recovered.