Supreme Court rules against Apple in App Store antitrust case

The Supreme Court is letting an antitrust lawsuit against Apple proceed — and it’s rejected Apple’s argument that iOS App Store users aren’t really its customers. The Supreme Court upheld the Ninth Circuit Court of Appeals’ decision in Apple v. Pepper, agreeing in a 5-4 decision that Apple app buyers could sue the company for allegedly driving up prices. “Apple’s line-drawing does not make a lot of sense, other than as a way to gerrymander Apple out of this and similar lawsuits,” wrote Justice Brett Kavanaugh.

Apple had claimed that iOS users were technically buying apps from developers, while developers themselves were Apple’s App Store customers. According to an earlier legal doctrine, “indirect purchasers” of a product don’t have standing to file antitrust cases. But in today’s decision, the Supreme Court determined that this logic doesn’t apply to Apple.

The court is careful to note that this is an “early stage” of the case — so there’s no ruling on whether Apple actually does have an unlawful monopoly in the App Store. But it could have larger ramifications for customers who want to sue any company for antitrust violations, and it sets the stage for a major battle between Apple and some angry customers.

Apple did not immediately reply to a request for comment.
 

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