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The Courts Software United States Apple Technology

The Supreme Court Will Decide If Apple's App Store Is a Monopoly (wired.com) 256

The Supreme Court will review a 2011 class-action lawsuit against Apple, accusing the company of operating an illegal monopoly by not allowing iPhone users to download mobile apps outside of its own App Store, reducing consumer choice. The case, being referred to as Apple Inc. v. Pepper., could have wide-reaching implications for consumers as well as other companies like Amazon. Wired reports: The dispute is over whether Apple, by charging app developers a 30 percent commission fee and only allowing iOS apps to be sold through its own store, has inflated the price of iPhone apps. Apple, supported by the Trump administration, argues that the plaintiffs in the case -- iPhone consumers -- don't have the right to sue under current antitrust laws in the U.S.

The case marks a rare instance in which the court has agreed not only to hear an antitrust case, but also one where no current disagreement exists in the circuit courts. The outcome could change decades of antitrust legal precedent -- either strengthening or weakening consumer protections against monopolistic power. The case also represents a huge source of revenue for Apple; the company raked in an estimated $11 billion last year in App Store commissions alone.
The lawsuit centers around another Supreme Court case from 1977, Illinois Brick Co. v. Illinois, "which established what is known as the Illinois Brick Doctrine," reports Wired. "That rule says you can't sue for antitrust damages if you're not the direct purchaser of a good or service."
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The Supreme Court Will Decide If Apple's App Store Is a Monopoly

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  • I wonder why? And I wonder if they know what a monopoly is..because it's pretty clear Apple's app store isn't.

    • Re: I wonder why (Score:2, Insightful)

      by Anonymous Coward

      You can only buy iOS apps from Apple. I can buy ps4 games from Sony's online store, as well as stores like best buy, ebgames.

      Looks like Apple has a monopoly on iOS app stores.

    • Re:I wonder why (Score:5, Insightful)

      by hjf ( 703092 ) on Monday June 18, 2018 @11:59PM (#56807242) Homepage

      hah remember when Microsoft made IE the default browser? Such a big scandal. Nothing kept you from installing Netscape.

      And yet, it was punished for abusing their monopoly.

      Oh but not only Apple doesn't allow you to install other browsers in their iOS. They don't let you install anything not from their app store.

      And yet, fanboys defend apple.

      • Re:I wonder why (Score:5, Informative)

        by Merk42 ( 1906718 ) on Tuesday June 19, 2018 @08:45AM (#56808716)

        They don't let you install anything not from their app store.

        ... and before anyone provides links to the iOS versions of Chrome, Firefox, et al. Keep in mind, they must use the same Webkit rendering engine built in to iOS, so they are effectively just skins of Safari.

    • I wonder why? And I wonder if they know what a monopoly is..because it's pretty clear Apple's app store isn't.

      Exactly. And given iOS' marketshare, I can't imagine ANYTHING that Apple did could be legally considered "monopolistic".

      • Completely irrelevant. They are determining if they are a monopoly in iOS applications. They are, of course, if they're the ones selling the App, not just providing a store. There is nothing inherently illegal about this, unless it's being abused. The question before the court will be whether or not Apple's argument really holds water- that they're not a monopoly because they're not the ones selling the apps, the developers are, via their store.
        If they're determined not to be a monopoly, as in they're not
        • Completely irrelevant. They are determining if they are a monopoly in iOS applications. They are, of course, if they're the ones selling the App, not just providing a store. There is nothing inherently illegal about this, unless it's being abused. The question before the court will be whether or not Apple's argument really holds water- that they're not a monopoly because they're not the ones selling the apps, the developers are, via their store.

          If they're determined not to be a monopoly, as in they're not the ones selling the apps, then the class-action suit must be dropped because it fails the litmus test of being able to sue for damages against a monopoly under antitrust law.

          That makes sense, in a twisted legalistic sort of way! ;-)

          Thanks for the edjumication!

    • While I do not like the fact that you can only load apps onto an iphone from the app store, I do not support penalizing Apple for doing this. On the other hand, whether the app store legally qualifies as a monopoly depends on how the law is written.

      And as another commenter has noted, a lower court has already ruled against Apple. If the Supreme Court did not take the case, the ruling that Apple IS a monopoly would stand. So, you should support the Supreme Court taking the case.
    • Wow. A majority of the Supreme Court justices considered this worthy enough to review -- but you think that the case brought forward is "obvious."

      OK.
  • According to the article, the appellate court ruled against Apple:

    In 2013, a district court in California initially sided with Apple, agreeing that the tech giant was shielded by the Illinois Brick Doctrine. But the plaintiffs appealed to the 9th Circuit Court of Appeals, which reversed the lower court's opinion last year.

    If only Apple had allowed side-loading apps a long time ago, I might have bought an iPhone.

    • According to the article, the appellate court ruled against Apple:

      In 2013, a district court in California initially sided with Apple, agreeing that the tech giant was shielded by the Illinois Brick Doctrine. But the plaintiffs appealed to the 9th Circuit Court of Appeals, which reversed the lower court's opinion last year.

      If only Apple had allowed side-loading apps a long time ago, I might have bought an iPhone.

      Sure - but how much do you think they care about you? There are a number of people that like the iPhone because of it's usability. There are some who know what they are doing, but look at their phone as something really important that they must have total control over. And there are some like me, who know what they are doing, and who look at a phone the same way they look at a refrigerator. I want to turn it on, and I want it to work. And if I want to write apps for it, I will. It isn't terribly difficult.

      • I have no reason to believe you know what you are doing.
      • Re: (Score:2, Troll)

        Sure - but how much do you think they care about you? There are a number of people that like the iPhone because of it's usability.

        My wife has one, its usability is crap. Usability is not subjective, its objective and can be measured empirically. iPhones fail on many of the usability metrics, and its no secret that they do so I keep wondering why so many iPhone users believe that the usability of an iPhone is so good?

        You think the usability of an iPhone is good? Watch how many iPhone users fail to discover the different things that the single button it has does. Yup - the iPhone fails multiple usability metrics before you even get to

        • Sure - but how much do you think they care about you? There are a number of people that like the iPhone because of it's usability.

          My wife has one, its usability is crap.

          um - huh. My wife and I have iPhones, and not had a failure yet. Testimonials aren't worth shit. Yours or mine.

  • siding against Apple on this one. Not after Gorsuch got appointed. He's got a long history of siding with corporations over consumers. The argument will be that you can just get an Android and side load so no monopoly here. Heck, that might even be a valid legal argument.
    • Suppose I owe PhantomFive $100.
      You owe me $100.
      He emails me asking "hey, where's the $100 you owe me?"
      I reply "I can't afford to pay you until rsilvergun pays me".

      Then he sues you, and so do I.

      He tells the court "I got shorted because rsilvergun didn't pay Ray. If rsilvergun had paid Ray, Ray would have paid me." At the time time, I'm suing you because you didn't pay me.

      He would not prevail in his suit against you. First, you owe *me*, not him. You and I may have worked out a payment plan, or could have a l

      • This is totally going off on a tangent, but it's kind of an interesting story, I think.

        Many years ago, the porn industry went through a period of doing pretty much what I described above. For example, John owed Dave, Dave owed Mike, Mike owed Ray, and Ray owed John, but nobody had any money. So they resolved all the debts with phone calls, without any actual money changing hands, after realizing that the money John owed would eventually end up back with him. There was a lot of that going on for a couple wee

    • No, it won't. This case has nothing to do with Android vs. Apple. It has to do with Apple owning a monopoly on App distribution on iPhones, and whether or not the class action suit ongoing against them has legal standing.
  • You sure about that? (Score:5, Informative)

    by Khyber ( 864651 ) <techkitsune@gmail.com> on Monday June 18, 2018 @09:49PM (#56806850) Homepage Journal

    From what I'm reading, they are merely deciding on whether the class actually has standing to sue.

    Oh, wait, /. editors don't actually do any real editing.

    • From what I'm reading, they are merely deciding on whether the class actually has standing to sue.

      Well, you're not wrong... but you're implying that the summary isn't, and it is.
      Whether or not they have standing is based on the litmus test for whether or not Apple has a monopoly on the distribution of applications to iOS devices, and whether or not such a thing can even be a monopoly. So in essence, they are ruling on whether or not Apple's App Store is a monopoly.

    • by 1ucius ( 697592 )

      Yea, it's weird they didn't grab some app developer, too e.g., Gab.

  • by vix86 ( 592763 ) on Monday June 18, 2018 @10:25PM (#56806974)

    If Apple loses this, then maybe they'll be forced to provide options for allowing side-loading apps with the general populace. This would allow GPL licensed libraries and applications to become available on iOS devices. The GPL requires that code licensed under it be redistributal and usable anywhere; however, there is a license agreement when you make and publish apps on the App Store that limits the code reuse capabilities. Some relevant links, 1 [engadget.com] 2 [stackexchange.com].

    • by wwphx ( 225607 )
      I disagree. At least at a minimal level Apple inspects code to try and find malware, they also have standards about reading address books and such. If third parties start selling software for side-loads, frankly I don't trust them to not do this. I admit some creepy software has gotten in to the Apple Store, and it gets yanked as soon as it's revealed to be creepy. I read about creepy apps in the Android store, and it seems to depend upon which Android store it's discovered on whether or not anything ha
      • by AmiMoJo ( 196126 )

        Relying on code review and automated behaviour scans is a solid fail. They need to make the OS robust enough to give the user full control of what apps can and cannot do, and explain the consequences to the user better.

        As for Android, the Play Store is no worse than Apple's App Store. The only other one I use is the open source F-Droid store, which of course means accepting all the risks associated with any open source package manager like you would find in any Linux distro.

        The main issue I have with the Ap

      • There seems to be a lot more caveat emptor in the Android app marketplace, and I really don't want to be bothered with it.

        Then don't bother with it. You can continue using only Apple's store, no one will force you to use other stores, should they be allowed. But you obviously don't speak for all iDevice owners, at least some of whom would like more options.

    • There is no reason why GPL licensed code cannot run on on iPhone. Your "license" argument is nonsense, you can use your own license on the App Store (but must agree to the minimum terms of Apple's license, that's not something GPL should have a problem with).

      The problem with GPL licensed software on iOS is that copyright holders of GPL licensed software told Apple they didn't want their software on the App Store. And if the copyright holder doesn't want their software on the App Store, then Apple removes
  • by reanjr ( 588767 ) on Monday June 18, 2018 @10:36PM (#56807006) Homepage

    NES cartridges were a design patented by Nintendo. It has been reported that premium games ($50) had a $15 fee paid to Nintendo for the use of the patented cartridge. How is that any different?

    Yes, Tengen existed and worked around the patent, just as jailbreakers can work around the iPhone lock down.

  • If you make something and I buy it you are doing evil by still trying to keep control of it as a way of making more money. I don't know if it is illegal but it should be.

    • Could you elaborate? As far as I can think in Android the situaction is completely different:
      • You can "sideload" applications
      • You can install alternative app stores (there's even some that specialise in open source apps)
      • You don't have to pay any money to develop an app and install it in your Android devices. You just need the free (as in beer) Android SDK
  • Then Comcast will be forced to enable cable tv subscribers to get content from other pay-per-view providers (like Netflix) through the cable box.

    • by dcw3 ( 649211 )

      Apples vs Oranges (or Comcasts)

      It's a false equivalence. Yes, Comcast (and others) should be treated as monopolies because they are on a local basis. Apple is not.

  • I keep thinking that part of the reason Apple has been such a closed garden and kept such a stranglehold on i-device hardware and software is that opening up the platform is a late-stage, slowing-growth expansion strategy they plan to unleash once they have significant declines in iPhone sales volumes.

    I can't help but think there's a world of potential uses for iPhones that get stymied because of Apple's restrictions on software functionality, I/O devices etc. It's a small computer with built-in display an

  • Really? This requires a SCOTUS decision?!? If the iPhone were anywhere close to being the only choice, you might be able to make a case. But it's not, and Apple's not anywhere close to a monopoly.

    • by 1ucius ( 697592 )

      You're missing the point of the lawsuit. For now, this is about boring legal stuff: who is able to being a lawsuit and who can't.

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