Supreme Court says iPhone users can pursue antitrust case against Apple and its App Store
The Supreme Court ruled 5-4 on Monday that a small group of iPhone users have the right to pursue a major antitrust lawsuit against Apple over its App Store. Justice Brett Kavanaugh, who wrote the majority decision, was joined by the court's four more liberal justices. President Trump's other Supreme Court appointee, Justice Neil Gorsuch, wrote the dissent, joined by Chief Justice John Roberts and fellow conservatives Samuel Alito and Clarence Thomas. The decision could open Apple up to enormous future damages.
The iPhone users contend that Apple is using its role as sole marketplace for iPhone apps to charge higher prices than those apps would get in a free market, on the theory that the 30 percent commission Apple charges developers gets passed along to consumers, NPR explains. Kavanaugh stressed that the court was not taking any position on the merits of the lawsuit, but wrote that "ever since Congress overwhelmingly passed and President Benjamin Harrison signed the Sherman Act in 1890, 'protecting consumers from monopoly prices' has been 'the central concern of antitrust.'"
In his dissent, Gorsuch said iPhone customers have no standing to bring an antitrust suit because the "pass on" theory fails to make them direct consumers. The only parties who could sue Apple on antitrust grounds, he said, are the app developers.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"The truth is, the app developers are too scared to sue Apple, because Apple can just cut them off," Josh Davis, a law professor at the University of San Francisco, tells The Associated Press. "So the real bottom line here is: Someone gets to sue, someone gets to find out: Did Apple violate the antitrust laws, and through that violation, charge purchasers of apps more than they could have in a competitive market?" Watch his brief summary of the case below. Peter Weber
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
'Horror stories of women having to carry nonviable fetuses'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Haiti interim council, prime minister sworn in
Speed Read Prime Minister Ariel Henry resigns amid surging gang violence
By Peter Weber, The Week US Published
-
Today's political cartoons - April 26, 2024
Cartoons Friday's cartoons - teleprompter troubles, presidential immunity, and more
By The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published