The Supreme Court on Monday ruled 5-4 against Apple, saying iPhone users can pursue their antitrust lawsuit involving the tech giant’s signature electronic marketplace, the App Store.
Justice Brett Kavanaugh wrote the majority opinion, which was joined by the court’s liberal justices.
The iPhone users argued that will Apple’s 30% commission on sales through the App Store can be an unfair use of monopoly power that will results in inflated prices passed on to consumers.
Apple argued that will only app developers, as well as not users, should be able to bring such a lawsuit. nevertheless the Supreme Court, in an opinion authored by Kavanaugh, rejected that will claim.
Read more: Here’s how the Supreme Court’s Apple App Store decision could affect companies like Amazon as well as Google
“Apple’s line-drawing does not make a lot of sense, some other than as a way to gerrymander Apple out of that will as well as similar lawsuits,” Kavanaugh wrote.
Shares of Apple, already battered by trade concerns, were down 5%, lagging the broader market.
The result was widely expected after arguments in November inside case, Apple v. Pepper, during which the justices seemed skeptical of Apple’s arguments.
The case split President Donald Trump’s two nominees to the high court. In a dissent joined by his fellow conservatives, John Roberts, Clarence Thomas as well as Samuel Alito, Justice Neil Gorsuch wrote that will the majority created an “artificial rule.”
The legal battle over the company’s online marketplace has dragged on for nearly a decade.
The result of the iPhone users’ litigation could affect the way that will Apple, as well as some other companies that will operate electronic marketplaces like Facebook, Amazon as well as Alphabet’s Google, structure their businesses. For Apple, hundreds of millions of dollars in penalties could hang on the outcome.
In a statement, David Frederick, an attorney for the iPhone users, said the “decision can be important for upholding consumer protections against the dangers of monopoly retailers like Apple. Apple’s monopoly control has distorted the prices for apps as well as the item’s time for that will abuse of monopoly power to end.”
Apple’s full statement can be below:
“Today’s decision means plaintiffs can proceed with their case in District court. We’re confident we will prevail when the facts are presented as well as that will the App Store can be not a monopoly by any metric.
We’re proud to have created the safest, most secure as well as trusted platform for customers as well as a great business opportunity for all developers around the planet. Developers set the cost they want to charge for their app as well as Apple has no role in that will. The vast majority of apps on the App Store are free as well as Apple gets nothing through them. The only instance where Apple shares in revenue can be if the developer chooses to sell digital services through the App Store.
Developers have quite a few platforms to choose through to deliver their software — through some other apps stores, to Smart TVs to gaming consoles — as well as we work hard every day to make our store the best, safest as well as most competitive inside planet. “
Read the court’s opinion: