bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

The Washington Post

Apple suffered a significant defeat at the US Supreme Court on Monday as the justices ruled that consumers could continue with a lawsuit against the company over the way it manages its App Store.
The 5-4 ruling could add to pressure for Apple to cut the 30 per cent commission it charges on app sales, one of its most lucrative lines of business.
Lawyers pressing the case have said they will seek hundreds of millions of dollars on behalf of overpaying consumers.
Justice Brett Kavanaugh, an appointee of US President Donald Trump, joined the court’s four liberal justices to rule against Apple and wrote the decision.

Apple shares were trading down US$11, or 5.5 per cent, at 186.25 by early afternoon.
At the heart of the case is Apple’s handling of iPhone and iPad apps created by third-party developers and made available on its heavily curated App Store.
Apple long has taken a commission on every paid app sold through this portal, rankling some developers that essentially see it as a tax.
Teen sues Apple for US$1 billion, blames facial recognition error for arrest
The policy led iPhone owners to band together in 2011 with a class action lawsuit, led by plaintiff Robert Pepper, who argued that consumers ultimately felt the brunt of Apple’s policies because developers raised the prices of their apps.
These consumers brought their case under federal antitrust laws, arguing that Apple’s practices made it a monopoly.

Apple contended that the lawsuit was barred under a 1977 Supreme Court ruling that said only direct purchasers of a product can collect damages for overpricing under federal antitrust law. That decision was designed in part to keep companies from having to pay twice for the same misconduct.
The iPhone giant said it only acted as the intermediary, providing a storefront where consumers found and bought the apps they later installed on their phones.
Apple to reveal new home-grown apps at developer event
But Kavanaugh, joining the court’s liberal wing in the majority, said App Store customers met that test because they buy directly from Apple.
“The iPhone owners are not consumers at the bottom of a vertical distribution chain who are attempting to sue manufacturers at the top of the chain,” Kavanaugh wrote. “There is no intermediary in the distribution chain between Apple and the consumer.”




Apple and its tech industry allies had said before the ruling that a decision allowing the lawsuit could lead to expensive antitrust claims against other companies that run online marketplaces, potentially affecting Alphabet Inc’s Google, Amazon.com and Facebook.
In dissent, Justice Neil Gorsuch said the ruling “exalts form over substance”. He was joined by Chief Justice John Roberts and Justices Samuel Alito and Clarence Thomas.
Apple boss Tim Cook urges China to keep opening its economy
“To evade the court’s test, all Apple must do is amend its contracts,” Gorsuch wrote.
“Instead of collecting payments for apps sold in the App Store and remitting the balance (less its commission) to developers, Apple can simply specify that consumers’ payments will flow the other way: directly to the developers, who will then remit commissions to Apple.”
Additional reporting by Bloomberg and Reuters


iPhone spyware DarkSword hits Malaysia, exposing spread of sophisticated hacking tools

‘iPhone City’ veteran tapped as party boss of China’s Silicon Valley

In Kunshan, China’s Foxconn nerve centre, old tech tries to learn new tricks

Apple’s Tim Cook visits China as reliance on Chinese supply chains endures

Apple

US Supreme Court rules against Apple, allowing lawsuit targeting App Store to proceed

The 5-4 ruling could add to pressure for Apple to cut the 30 per cent commission it charges on app sales. Photo: Reuters

FILE PHOTO: The U.S. Supreme Court is seen in Washington, U.S., June 11, 2018. REUTERS/Erin Schaff/File Photo

Apple Chief Executive Officer Tim Cook watches customers awaiting the grand opening of the new Apple Carnegie Library store in Washington, U.S., May 11, 2019. REUTERS/Joshua Roberts TPX IMAGES OF THE DAY

Apple to reveal new home-grown apps at annual developer conference as competition heats up

A customer enters the Apple store in New York. Apple on Monday, March 18, 2019, after Apple unveiled a new iPad that's thinner and slightly larger than its current entry-level tablet. Photo: AP

Apple forecast beats Wall Street estimates as iPhone demand stabilises

The Apple logo at the entrance to the Fifth Ave. Apple store is seen in New York. Photo: AFP

Apple sues Qualcomm for US$1 bln over royalties

Attendees try out VR headsets at the Qualcomm booth during the 2017 CES in Las Vegas, Nevada January 6, 2017. REUTERS/Steve Marcus

Paul Jacobs, chief executive officer of Qualcomm Inc., speaks during a panel session at the World Economic Forum (WEF) in Davos, Switzerland, on Friday, Jan. 20, 2017. World leaders, influential executives, bankers and policy makers attend the 47th annual meeting of the World Economic Forum in Davos from Jan. 17 - 20. Photographer: Jason Alden/Bloomberg

An iPhone is seen on display at a kiosk at an Apple reseller store in Mumbai, India. Photo: Reuters

News

World

United States & Canada

Tech

The lawsuit accuses the iPhone giant of overcharging on its App Store
Apple long has taken a commission on every paid app sold through this portal, rankling some developers that essentially see it as a tax


Apple long has taken a commission on every paid app sold through this portal, rankling some developers that essentially see it as a tax.


United States

Technology

US Politics

Apps