Technology

The US Supreme Court Takes Up the Illegal Activities of Apple App Store

The Justices of the Supreme Court in America will take up the case of Apple Inc. on Monday. Apple had made an effort to cover up a lawsuit, which looked for damages from the organization for the alleged monopoly in the market for the software applications of iPhone and thereby forcing the customers to pay more for the products. The Supreme Court justices will listen to the arguments in the appeal made by Apple against the decision by a lower court for reversing the proposed lawsuit from a group of iPhone users. The lawsuit basically alleged that the technology company had violated the antitrust laws of the federal government by enabling the applications to get sold through the App Store of the company. Moreover, they took a commission of 30 percent of all those purchases.

The case basically hangs on exactly how the justices will apply one of their previous decisions to the claims made against Apple. The ruling made back in the year 1977, imposed limits on the damages for anti-competitive conduct to all those who were overcharged directly rather than those victims, who had to pay the overpriced amount in an indirect manner when they got passed on by others. The developers have already fixed the prices of their applications. Still, Apple collects payments from the users of iPhones by keeping a commission of 30 percent on each and every purchase. One particular area of dispute in this particular case is whether the application developers will be able to recover the cost of the commission amount by getting it passed on to the consumers.

The plaintiffs mentioned it is highly unlikely that the app developers will file a case against Apple. It is so because the company, after all, controls the whole service from where they can earn money. Thus it leaves almost no one to challenge the anti-competitive conduct. Apple has made an urge to get the claims regarding antitrust completely dismissed by putting forward the argument that the plaintiffs did not have the necessary legal standing to bring up the case against them.

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