Author: Harrison McAvoy / Source: The Next Web
Any day now, the US Supreme Court will issue a decision in a case called Apple Inc. v. Pepper, where a group of iPhone users have said that the Apple App Store, the only place they can get software (or apps) on their phones, is an unlawful monopoly. They’re right.
It’s no secret that Apple forces users of its mobile devices (iPhones and iPads) to download apps through its app store. Apple does this so it gets a cut of every software purchase on a mobile device running on iOS. In the Pepper case, someone has finally stood up to Apple’s monopolization of the distribution of iOS apps. If successful, the plaintiffs could force Apple to finally change its rules, resulting in greater competition and innovation in the delivery of apps to consumers, as well as lower prices for developers and consumers alike.
Sounds good, right? There’s only one problem: There’s a good chance the Supreme Court says the iPhone users can’t recover damages from Apple, which might end the case before Apple’s conduct can be evaluated.
Under a longstanding rule of antitrust law, only direct purchasers of a monopolist’s services can file a lawsuit for money damages, and Apple has argued that iPhone users don’t buy apps from Apple but from developers.
The Justice Department has said that Apple is right, adding to the chorus of experts saying the plaintiffs’ claims for damages should be dismissed under existing law. If the Supreme Court agrees, and the plaintiffs abandon their suit, Apple will maintain its monopoly and continue to charge artificially high prices for app distribution — up to 30 percent of developers’ revenue — leaving consumers with less options and higher prices.
But there’s a silver lining — developers can stop Apple. While Apple may be right that iPhone users can’t sue for damages, there is little question that developers can. Apple itself has argued that developers, not iPhone users, buy services directly from Apple, meaning developers have the right to sue Apple for its app store policies. App developers, who are greatly harmed by Apple’s monopoly, should take Apple up on the opportunity.
A developer-led suit would likely be successful, primarily because Apple’s restrictions appear to be a clear violation of the antitrust laws. By prohibiting iOS users from accessing software from anywhere other than its app store, Apple leaves developers with no…
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