Supreme Court rules iPhone users can sue Apple over App Store prices
The Supreme Court on Monday said that iPhone users can proceed with a class-action lawsuit against Apple over its control of app sales in a ruling that could threaten the company's exclusive marketplace of third-party software.
A group of consumers had sued Apple, claiming that the company's monopoly over its App Store led to inflated app prices. Apple disputed the legality of the suit, arguing the consumers had no standing to sue the company because it merely operated the App Store as an intermediary between users and the developers who make and sell apps.
Justice Brett Kavanaugh wrote the opinion for the 5-4 decision, surprising many by breaking with his conservative colleagues and siding with the court's liberal justices.
Ed Black, the president and CEO of the Computer & Communications Industry Association, a trade group which filed a brief in support of Apple, called the ruling “disappointing.”
“We are concerned that the outcome of this ruling expands a previous ruling (Illinois Brick’s), and increases liability risks for multi-sided business models,” Black said in a statement. “The decision may unintentionally expose businesses offering digital platform services to unintended liability.”
The decision comes as Apple and other tech companies face growing antitrust scrutiny over the way they operate their platforms. The high court provided a rare win for antitrust reformers, who see large tech companies as a unique threat to competition and consumers.
“I think it’ll have clear implications for tech companies,” said Sandeep Vaheesan, the legal director at the Open Markets Institute, which filed an amicus brief in the case in support of Pepper.
Vaheesan applauded the majority opinion for recognizing that the Sherman Act of 1890, the nation’s first federal antitrust law, gave consumers the right to bring lawsuits against alleged monopolies.
Apple, Vaheesan said, is “really the giant sitting between the two ends of the market.”
https://thehill.com/regulation/court-battles/443358-supreme-court-rules-class-action-lawsuit-against-apple-can-advance