The dispute over the app store monopoly has been swelling for a few years now. Just in time for the 10th anniversary of Apple’s app distribution platform, the US Supreme Court will address the question of whether or not the Apple App Store meets the monopoly criteria. Legally, this is not as simple as you might think, because a decision can have far-reaching consequences for Apple and comparable app marketplaces.
The question is: Did Apple monopolise the market for iPhone apps? On Monday (18.6) the Supreme Court declared itself competent in the case of Robert Pfeffer and others against Apple. The consequences of a decision can be far-reaching for all customers and other app marketplaces such as Amazon or Google. The lawsuit concerns the question of whether Apple’s 30 percent commission and the requirement to deliver all apps exclusively via the App Store had an influence on the pricing of the apps. In contrast, Apple denies the plaintiffs’ right to apply applicable antitrust laws, Wired argues. Apple is supported by the Ministry of Justice of the Trump Administration. However, it is not said for anything: two lawyers, three opinions.
The case is a rare case in which the Court of First Instance has agreed not only to hear cartel proceedings but also proceedings in which there are currently no contradictory judgments in lower courts. That’s what makes this case so special because Apple has a lot at stake. Last year Apple scooped about $11 billion from app store commissions. A ruling by the Supreme Court could, therefore, set the course for future decisions on antitrust issues and either explicitly strengthen or sustainably weaken consumer rights vis-à-vis major suppliers.
Apple tries to argue that it is only the developers who set the prices for their apps themselves. The plaintiffs argue that Apple has monopolised the distribution of apps. If there were competition between several App Stores end customer prices for Apps would sink, so the presented ideal of the plaintiffs. The Apple App Store is therefore not a shopping mall with a wide range of products, but rather the only shop in town that forces app developers to sell only there and at the same time forces customers to shop only there.