IPhone Users Could Sue Apple Over App Store "Monopoly"

IPhone Users Could Sue Apple Over App Store

In December 2013, a lower court sided with Apple, who denied the claims and said that users could not sue it because apps on the App Store are purchased from developers, not Apple.

The 9th U.S. Circuit Court of Appeals said Thursday the plaintiffs have the right to sue Apple because they purchased apps directly from the company.

A USA appeals court has ruled that buyers of iPhone apps may sue Apple over allegations of monopolising the market by not allowing them to buy apps outside its App Store.

KitGuru Says: Apple has been found guilty of price-fixing before, so this lawsuit isn't entirely doomed to fail. The allegations regarding the monopoly of the app industry has become a big concern for Apple once more, though the company hasn't made any official statement yet.

The decision has sent the case back to the federal trial court in Oakland for further scrutiny.

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By comparison, the iPhone 7 and iPhone 7 Plus both ship with a choice of 32GB, 128GB and 256GB storage configurations - meaning that you can store a lot more apps on a top-of-the-range iPhone than you can a top-of-the-range Apple TV. The company lets developers publish their app on the App Store in return for a 30 per cent cut of revenue. "Apple discourages iPhone owners from downloading unapproved apps, threatening to void iPhone warranties if they do so".

If the challenge ultimately succeeds the expected outcome is to have Apple allow people shop for applications wherever they want and this would presumably lower prices.

Well, good luck with trying to get Apple to understand that reasoning.

“[T] he Court finds that the 30% figure for which Plaintiffs complain is not a fixed fee. but a cost passed-on to consumers by independent software developers. The goal here is obviously to get Apple to pay out and in this case, the suit will be pressing for "hundreds of millions" of United States dollars.

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