In setback for Apple, US Supreme Court lets App Store antitrust suit proceed

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WASHINGTON: A divided U.S. Supreme Court on Monday gave the go-ahead to an antitrust lawsuit accusing Apple Inc of forcing consumers to overpay ...

WASHINGTON: A divided U.S. Supreme Court on Monday gave the go-ahead to an antitrust lawsuit accusing Apple Inc of forcing consumers to overpay for iPhone software applications, a decision that could lead to billions of dollars in damages and put at risk the company's lucrative way of selling apps.

Monday's ruling, written by Justice Brett Kavanaugh, did not resolve the merits of the claim against Apple. But if the plaintiffs win at trial, Mark Rifkin, a lawyer representing them, said that"the overcharges paid by consumers since Apple's monopoly began will be measured in the billions of dollars."

"Apple's theory would provide a roadmap for monopolistic retailers to structure transactions with manufacturers or suppliers so as to evade antitrust claims by consumers and thereby thwart effective antitrust enforcement," Kavanaugh wrote in the ruling. The legal setback for Apple comes as investors are looking to the company's services business, including its App Store, to fuel growth as iPhone sales slow.

The ruling could lead to other lawsuits against tech companies that act as platforms for other products or services. Apple had warned that this could pose a threat to e-commerce, a rapidly expanding segment of the U.S. economy worth hundreds of billions of dollars in annual sales.

 

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