Skip to main content

Apple v. Pepper: The Supreme Court could rule the App Store is a monopoly

The Supreme Court is skeptical that the App Store isn't a monopoly

Apple is facing yet another antitrust case. The subject this time? Apps. Earlier this year, the Supreme Court agreed to hear Apple Inc. v. Pepper, a case that asks whether or not Apple has monopolized the app market. If the Supreme Court rules against Apple, it could have far-reaching implications for everyone. Now, after hearing Apple’s arguments in the case, it’s looking more and more like that might happen.

According to a report from CNBC, the U.S. Supreme Court appeared skeptical of Apple’s arguments against ruling that the App Store is a monopoly. Two of the judges suggested that the precedent on which Apple is basing its arguments may need to be revised. Despite this, it’s impossible to tell how the Supreme Court will rule — most cases that have come to the Supreme Court have ended up in favor of corporations. It’s important to note that the Supreme Court isn’t settling the underlying antitrust issue, it’s ruling whether consumers have the right to bring this case against Apple at all.

At the heart of the dispute is the issue of money. Apple both charges developers 30 percent of their app’s revenue, and prevents iOS devices from being able to install apps from other sources. Because of that, some argue that Apple has inflated the price of iPhone apps in an effort to make more money.

On the other side, Apple argues that the plaintiffs, who are consumers, don’t have the right to sue Apple under current U.S. antitrust laws. The key to that argument, as noted in a report by Wired, is a case from 1977, Illinois Brick Co. v. Illinois, which resulted in a ruling that you can’t sue for an antitrust case if you didn’t directly purchase goods or services. Because of that, Apple says, it’s not selling apps to customers, the developers are through the App Store.

The only problem with that is that the plaintiffs are arguing that Apple has monopolized app distribution — not necessarily apps themselves. There is evidence of that on Android; users can get apps from the Google Play Store, but they can also get them from Amazon and other third-party stores, too, if they so choose.

The case could result in some major changes for consumers and Apple alike. If Apple wins the case, nothing much will change with how it and developers interact, and developers will still be forced to go through the App Store and abide by Apple’s rules. If the plaintiffs win, however, Apple may have to pay hundreds of millions of dollars and it may have implications for other large tech companies that sell products from third parties, including the likes of Amazon.

Updated on November 26, 2018: The Supreme Court has heard Apple’s oral arguments.

Editors' Recommendations

Christian de Looper
Christian’s interest in technology began as a child in Australia, when he stumbled upon a computer at a garage sale that he…
The best iPhone and Android apps for Black History Month 2024
best iPhone and Android apps for Black History Month.

February is celebrated as Black History Month to honor Black Americans' remarkable achievements and contributions. The theme for this year is "African Americans and the Arts," which shines a light on the impact of African Americans in different artistic fields, such as cultural expression, visual and performing arts, fashion, literature, and more.

In this regard, we present a list of popular iOS and Android apps developed by Black-owned businesses and cover various topics such as finance, entertainment, wellness, and more. These apps run on all the latest smartphones, including the Samsung Galaxy S24 Ultra and iPhone 15 Pro.
Calendly

Read more
Google is launching a powerful new AI app for your Android phone
Google Gemini app on Android.

Remember Bard, Google’s answer to ChatGPT? Well, it is now officially called Gemini. Also, all those fancy AI features that previously went by the name Duet AI have been folded under the Gemini branding. In case you haven’t been following up all the AI development flood, the name is derived from the multi-modal large language model of the same name.

To go with the renaming efforts, Google has launched a standalone Gemini app on Android. Moreover, the Gemini experience is also being made available to iPhone users within the Google app on iOS. But wait, there’s more.

Read more
Apple is updating one of the oldest apps on your iPhone
The Apple iPhone 15 Pro Max and iPhone 14 Pro showing the screens.

Apple iPhone 14 Pro (left) and iPhone 15 Pro Max Andy Boxall / Digital Trends

Apple has updated one of its original iPhone apps, the Clock app, in the first iOS 17.4 beta. Specifically, the update includes a small, but significant change to the Stopwatch function.

Read more