The United States Supreme Court ruled this week that users could sue Apple for allegedly monopolizing the App Store and driving up the price of apps. This means that, if you’re so inclined, you could bring suit against Apple for overcharging you. Apple v Pepper, as the case is called, dealt with the issue of…
The United States Supreme Court ruled this week that users could sue Apple for allegedly monopolizing the App Store and driving up the price of apps. This means that, if you’re so inclined, you could bring suit against Apple for overcharging you.
Apple v Pepper, as the case is called, dealt with the issue of whether Apple’s 30 percent revenue cut is a charge that trickles down to consumers. Given that the App Store is a monopoly — meaning there’s really no other way to legally get an app on an iPhone — the plaintiffs argued that the size of the cut necessitated app developers set higher prices to offset it.
Apple’s counter-argument is that it’s an intermediary in the sale and, under existing anti-trust laws, shouldn’t be sued. The law in question, called “the Illinois Brick doctrine,” essentially rules that direct purchasers of a product (apps, in this case) can only bring lawsuits against manufacturers..
That sounds complicated, but basically it’s Apple arguing it owns the store, not the product.
