Apple Antitrust Lawsuit reaches U.S. Supreme Court today

An antitrust lawsuit against Apple will reach the U.S. Supreme Court today, determining whether the company has created a monopoly by only allowing apps to be sold through its first-party App Store and that Apple’s 30% commissions for the App Store are excessive.

Apple is appealing a lower-court decision and claims that its practices are not monopolistic. In Apple’s view, siding with the consumers who filed the lawsuit would “threaten the burgeoning field of e-commerce.”

Apple will argue that it’s only acting as an agent for developers who sell to consumers via the App Store, not a distributor, and cites a 1977 Supreme Court ruling as part of its defense.

The antitrust lawsuit dates back to 2011. Originally, a federal court in Oakland, California threw out the suit and said that consumers were not direct purchasers, with the higher fees they paid being passed on to them by developers. Last year, the 9th Circuit Court of Appeals in San Francisco revived the lawsuit and said Apple acts as a distributor, selling iPhone apps directly to consumers.

Originally, a federal court in Oakland, California threw out the suit and said that consumers were not direct purchasers, with the higher fees they paid being passed on to them by developers. Last year, the 9th Circuit Court of Appeals in San Francisco revived the lawsuit and said Apple acts as a distributor, selling iPhone apps directly to consumers.

 

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