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On Monday, the US Supreme will hear arguments in the context of an antitrust lawsuit against Apple about its rules relating to the App Store and the Appeals Commission. As reported by Reuters, the problem stems from the 30% reduction in Apple's App Store sales. Apple has previously asked the US Supreme Court to drop this antitrust lawsuit.
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Apple is appealing a decision of the lower court and asserts that its practices are not monopolistic. According to Apple, lining up with the consumers who brought the lawsuit "would pose a threat to the burgeoning e-commerce sector." Apple quotes a 1977 Supreme Court decision as part of its defense. Reuters reports:
Apple seized a 1977 Supreme Court ruling that limited the damages for anti-competitive behavior to directly overburdened people instead of indirect victims who had paid a surcharge charged by others. The court said that in this case, part of the concern was to release the judges from the complex calculation of damages.
Apple therefore argues that it acts only as an agent for developers who sell to consumers via the App Store, and not as a distributor.
The antitrust lawsuit goes back to 2011 and alleges that Apple has created a monopoly by allowing only the sale of apps via its first App Store. The lawsuit also indicates that Apple uses this monopoly to charge excessive commissions.
Originally, a federal court in Oakland, Calif., Dismissed the complaint and stated that consumers were not direct buyers. The higher fees that they had paid them were transferred by the promoters. Last year, the 9th Circuit Court of San Francisco relaunched the lawsuit and said that Apple was acting as a distributor and selling iPhone applications directly to consumers.
While Apple is appealing the lower court's decision, it is backed by the US Chamber of Commerce's business group, which wrote in a memoir: "The increased risk and cost of litigation will curb innovation, deter commerce and harm developers, retailers and consumers alike. "
The 30% reduction in Apple's App Store sales is not new, but in 2016, it adjusted the model and reduced its subscription revenue reduction to 15% after one year. In addition to this lawsuit, the model has sparked criticism from major digital companies such as Amazon and Spotify.
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