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Antitrust Suit Against the Apple App Store Tossed Out of Court

by Todd Haselton | August 16, 2013August 16, 2013 7:00 pm PST

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A U.S. District judge in California tossed a lawsuit against Apple in California on Friday. The lawsuit was originally filed two years ago by consumers who argued that Apple had complete control, or a monopoly, over iPhone app sales.

The group thought it was illegal that Apple approved applications with high prices, which meant that consumers were required to pay those costs instead of going with cheaper options not approved by Apple. That seems a bit silly on the surface, considering that Apple green lights applications to make sure they meet specific criteria, most often criteria that won’t damage an iPhone’s software experience.

The argument that could be made from the consumer’s side, is that Apple might want to promote higher app prices because it takes 30 percent of the revenues for every app sold by developers. The more an app costs, the more Apple could potentially make from sales. That business model obviously encourages higher prices, though demand ultimately dictates the market.

“At a minimum, plaintiffs must allege facts showing that each named plaintiff has personally suffered an injury-in-fact based on Apple’s alleged conduct,” Judge Yvonne Gonzalez Rogers said, according to Bloomberg.  The plaintiffs never purchased the applications they were complaining about, however, so they weren’t really victims at all. Apparently the group will refile their case.

Bloomberg

Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...

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