{"id":25246,"date":"2019-05-13T15:32:13","date_gmt":"2019-05-13T19:32:13","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=25246"},"modified":"2021-10-15T15:15:55","modified_gmt":"2021-10-15T19:15:55","slug":"app-store-monopoly-lawsuit","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2019\/05\/13\/app-store-monopoly-lawsuit\/","title":{"rendered":"App Store Monopoly Lawsuit"},"content":{"rendered":"<p><a href=\"https:\/\/www.nytimes.com\/2019\/05\/02\/opinion\/apple-app-store-iphone.html\">NY Times Editorial Board<\/a>:<\/p>\n<blockquote cite=\"https:\/\/www.nytimes.com\/2019\/05\/02\/opinion\/apple-app-store-iphone.html\">\n<p>The actions by Apple highlight the inherent tension in the company&rsquo;s fierce control over its mobile operating system: On the one hand, the closed environment is a boon to consumer privacy because the company has the leverage to insist upon it; on the other hand, that environment fosters a kind of monopoly.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/www.theverge.com\/2019\/5\/13\/18617727\/apple-v-pepper-antitrust-illinois-brick-supreme-court-case-loss\">Adi Robertson<\/a> (<a href=\"https:\/\/www.macrumors.com\/2019\/05\/13\/supreme-court-lets-app-store-monopoly-suit-proceed\/\">MacRumors<\/a>):<\/p>\n<blockquote cite=\"https:\/\/www.theverge.com\/2019\/5\/13\/18617727\/apple-v-pepper-antitrust-illinois-brick-supreme-court-case-loss\">\n<p>The Supreme Court is letting an antitrust lawsuit against Apple proceed, and it&rsquo;s rejected Apple&rsquo;s argument that iOS App Store users aren&rsquo;t really its customers. <a href=\"https:\/\/www.supremecourt.gov\/opinions\/18pdf\/17-204_bq7d.pdf\">The Supreme Court upheld<\/a> the Ninth Circuit Court of Appeals&rsquo; decision in <em>Apple v. Pepper<\/em>, agreeing in a 5-4 decision that Apple app buyers could sue the company for allegedly driving up prices. &ldquo;Apple&rsquo;s line-drawing does not make a lot of sense, other than as a way to gerrymander Apple out of this and similar lawsuits,&rdquo; wrote Justice Brett Kavanaugh.<\/p>\n<p><a href=\"https:\/\/www.theverge.com\/2018\/6\/20\/17479480\/supreme-court-apple-vs-pepper-antitrust-lawsuit-standing-explainer\">Apple had claimed<\/a> that iOS users were technically buying apps from developers, while developers themselves were Apple&rsquo;s App Store customers. According to an earlier legal doctrine known as Illinois Brick, &ldquo;indirect purchasers&rdquo; of a product don&rsquo;t have the standing to file antitrust cases. But in today&rsquo;s decision, the Supreme Court determined that this logic doesn&rsquo;t apply to Apple.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/rjonesy\/status\/1127944210928295936\">Ryan Jones<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/rjonesy\/status\/1127944210928295936\">\n<p>I believe this is true and right.<\/p>\n<p>Only Apple charges, refunds, owns the customer relationship, sends receipts, etc.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/marcoarment\/status\/1127948910574690304\">Marco Arment<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/marcoarment\/status\/1127948910574690304\">\n<p>I&rsquo;m no lawyer, but two things have been obvious to me:<\/p>\n<p>- Customers absolutely buy apps from Apple, not developers.<\/p>\n<p>- Apple&rsquo;s requirement that all in-app transactions go through their system (which takes 30%) is anticompetitive, and should absolutely be challenged by regulators.<\/p>\n<p>Add this to the pile of significant legal anticompetitive challenges that Apple faces by their in-app purchase rules.<\/p>\n<p>They&rsquo;ll never allow sideloading or reduce the 30%, but I expect all of this to result in a relaxing of the &ldquo;can&rsquo;t even mention other payment methods&rdquo; rule.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/elkmovie\/status\/1127950126796943361\">Michael Love<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/elkmovie\/status\/1127950126796943361\">\n<p>Could be forced to do a lot more, c.f. Microsoft having to un-bundle IE; Apple could be compelled to not only allow other app stores but actually provide a startup alert to invite you to pick an alternate one.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/stroughtonsmith\/status\/1127954986351169536\">Steve Troughton-Smith<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/stroughtonsmith\/status\/1127954986351169536\">\n<p>If antitrust rulings against Apple are finally what it takes to bring Gatekeeper to iOS, then so be it. It is crazy that non-developer users pay for $100 developer accounts just to sideload apps<\/p>\n<\/blockquote>\n\n<p>Previously:<\/p>\n<ul>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2019\/04\/29\/apple-cracks-down-on-screen-time-apps-that-use-mdm\/\">Apple Cracks Down on Screen Time Apps That Use MDM<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2019\/03\/26\/apps-that-benefit-and-threaten-apple\/\">Apps That Benefit and Threaten Apple<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2019\/03\/13\/spotify-time-to-play-fair\/\">Spotify: Time to Play Fair<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2018\/11\/27\/antitrust-the-app-store-and-apple\/\">Antitrust, the App Store, and Apple<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2016\/04\/26\/antitrust-and-aggregation\/\">Antitrust and Aggregation<\/a><\/li>\n<\/ul>\n\n<p id=\"app-store-monopoly-lawsuit-update-2019-05-14\">Update (2019-05-14): <a href=\"https:\/\/twitter.com\/JohnPaczkowski\/status\/1128017126361403393\">John Paczkowski<\/a> (<a href=\"https:\/\/twitter.com\/StephenNellis\/status\/1128015027141787654\">Stephen Nellis<\/a>):<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/JohnPaczkowski\/status\/1128017126361403393\">\n<p>Here&rsquo;s Apple&rsquo;s statement on the  #SCOTUS antitrust ruling<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/elkmovie\/status\/1128019275309027329\">Michael Love<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/elkmovie\/status\/1128019275309027329\"><p>This is&#8230; not great spin. And &ldquo;if the developer chooses to sell digital services through the App Store&rdquo; is outright misleading - if you choose to sell digital goods for one of the world&rsquo;s two main mobile <em>operating systems<\/em>, you have to pay Apple their 30%.<\/p><p>And in the US at least Apple controls more than half of the mobile OS market (almost 2\/3) - if you want to sell digital goods of any kind to the majority of Americans, you have to pay Apple 30%, you&rsquo;re not really offered a &lsquo;choice&rsquo; to distribute through the App Store.<\/p><\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/Freerunnering\/status\/1128047529856241664\">Kyle Howells<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/Freerunnering\/status\/1128047529856241664\">\n<p>1. Yes Apple holds a complete monopoly on iOS users with the AppStore and aggressively shuts down any other options.<\/p>\n<p>2. Simultaneously &ldquo;app buyers could sue the company for allegedly driving up prices&rdquo; is laughable. The AppStore is a race to the bottom.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/stratechery.com\/2019\/the-supreme-court-rules-against-apple-in-favor-of-the-dissent-the-implications-of-apple-v-pepper\/\">Ben Thompson<\/a>:<\/p>\n<blockquote cite=\"https:\/\/stratechery.com\/2019\/the-supreme-court-rules-against-apple-in-favor-of-the-dissent-the-implications-of-apple-v-pepper\/\">\n<p>The antitrust case against the Apple App Store is going to move forward. It&rsquo;s the wrong decision, and the reasons why explain why new legislation is needed.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/elkmovie\/status\/1128290089145073664\">Michael Love<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/elkmovie\/status\/1128290089145073664\">\n<p>I get Ben&rsquo;s argument, but I can&rsquo;t sue Apple, because the systems that are supposed to ensure that Apple can&rsquo;t punish me for suing them are not reliable enough for me to stake my livelihood on. So only way to see justice is to let consumers sue.<\/p>\n<p>Also, I would put myself forward as a textbook example of Apple&rsquo;s 30% being passed onto consumers: I pay quite substantial royalties on a lot of the stuff I sell and my prices are to a large extent determined by what margins I can live with on that content.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/mergesort\/status\/1128306739269570560\">Joe Fabisevich<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/mergesort\/status\/1128306739269570560\">\n<p>I think Apple abuses its App Store monopoly but that this case was ruled incorrectly, and the conservative side of the Supreme Court ruled correctly but lost in this case. If you need me I&rsquo;ll be hiding in my hole where Twitter doesn&rsquo;t exist for a bit.<\/p>\n<\/blockquote>","protected":false},"excerpt":{"rendered":"<p>NY Times Editorial Board: The actions by Apple highlight the inherent tension in the company&rsquo;s fierce control over its mobile operating system: On the one hand, the closed environment is a boon to consumer privacy because the company has the leverage to insist upon it; on the other hand, that environment fosters a kind of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2019-05-13T19:32:15Z","apple_news_api_id":"a434851d-1866-44c4-b066-e196cca5a6c0","apple_news_api_modified_at":"2021-10-15T19:15:59Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAAAg==","apple_news_api_share_url":"https:\/\/apple.news\/ApDSFHRhmRMSwZuGWzKWmwA","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[2085,91,38,41,209,2132],"class_list":["post-25246","post","type-post","status-publish","format-standard","hentry","category-technology","tag-antitrust","tag-appstore","tag-apple","tag-lawsuit","tag-legal","tag-sideloading"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/25246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=25246"}],"version-history":[{"count":2,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/25246\/revisions"}],"predecessor-version":[{"id":25256,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/25246\/revisions\/25256"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=25246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=25246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=25246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}