Hi guys, we just got word that Apple is facing a lawsuit from a group of iPhone owners who claim that Apple forces them to overpay for apps by forbidding rivals to the multibillion-dollar App Store.
Apple will be heading to the US Supreme Court this week to probably try to block a group of customers from suing the tech giant for monopoly abuse, media has reported.
After the customers won the right to launch a class action lawsuit against the company in 2017, Apple is now appealing to the Supreme Court to have the decision overturned, The Telegraph reported late on Saturday.
If Apple fails, the business model of the App Store, one of the company’s fastest-growing and most profitable divisions, could be threatened, it added.
Apple makes billions each year by taking a 30 percent cut of apps sold through the App Store, which are created by developers. App revenues grew by around a third in 2017 to $38.5 billion even as sales of Apple’s iPhones and iPads stalled.
The customers argue that its sizeable commission is evidence of the company exploiting its monopoly position over iPhone users. They argue that “iPhone consumers nationwide have paid (Apple) hundreds of millions of dollars more for iPhone apps than they would have paid in a competitive market“.