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Supreme Court to rule on whether consumers can sue Apple over App Store monopoly



Supreme Court to rule on whether consumers can sue Apple over App Store monopoly


The US Supreme Court will hear arguments today on whether consumers should be able to sue Apple in court for the “monopoly” that the App Store has. As iOS devices are designed to run only apps purchased from the App Store, the plaintiffs argue that this artificially increases the price of apps paid for in the store.

The US Supreme Court will hear arguments today on whether consumers should be able to sue Apple in court for the “monopoly” that the App Store has. As iOS devices are designed to run only apps purchased from the App Store, the plaintiffs argue that this artificially increases the price of apps paid for in the store. The developer receives 70% of the revenue collected for paid applications, while Apple insures 30%.

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The class action lawsuit that comes up in the lower courts accuses Apple of creating a closed market for iOS apps. Apple says it has done nothing more than provide a market for application developers to allow them to sell their products. According to an NBC News report the big question the Supreme Court will have to consider is whether the programmers or Apple are responsible for any price inflation. Developers set the price of their apps, but, as we said, Apple gets its full commission on every sale. Consumers argue that if they succeed in court, it could result in lower prices for cross-platform applications. The programmers argue that if consumers win in court, it will lead to the disruption not just of the App Store, but of other similar stores across multiple platforms, including Google, or more specifically Android. Make no mistake, a lot of money is at stake. The average price of an app is just $1, but to give you an idea the App Store generated $11 billion in revenue for Apple last year.