Consumers seek right to sue over alleged anti-competitive market
WASHINGTON — Apple Inc.’s exclusive market for selling iPhone apps came under fire at the Supreme Court on Monday, as justices considered whether consumers should be allowed to proceed with a lawsuit alleging the company has an illegal monopoly that produces higher prices.
The plaintiffs are a group of consumers pursuing a class-action lawsuit seeking damages on behalf of people who have purchased iPhone apps. They argue that prices are higher than they would be in a competitive market because Apple AAPL, -1.24% requires that all software for its phones be sold and purchased through its App Store.
App developers can only reach iPhone users through Apple’s store, and the company charges the developers a 30% commission.
The case came to the high court Monday on the indirect but critical question of who has the legal right to sue over Apple’s alleged monopoly. The iPhone maker argues that consumers can’t sue because the company doesn’t directly set app prices, a responsibility that lies with the app developers. Apple says it only serves as a conduit, and consumers aren’t really buying apps from the company.
