U.S. Supreme Court Appears 'Open' to Allowing App Store Monopoly Lawsuit vs. Apple to Proceed

U.S. Supreme Court justices "appeared open" to letting a proposed class-action lawsuit proceed against Apple that accuses the company of operating an illegal App Store monopoly, according to Reuters.

app store monopoly
The lawsuit was filed in 2011 by a group of iPhone users who believe Apple violates federal antitrust laws by requiring apps to be sold through its App Store, where it collects a 30 percent commission from all purchases, leading to inflated prices as developers pass on the cost of the commission to customers.

The bottom line is that the iPhone users, led by Chicago resident Robert Pepper, believe that apps would be priced lower outside of the App Store, as Apple's 30 percent cut would not be baked in to prices.

The lawsuit was initially dismissed in 2013 by a California district court, due to errors in the complaint, but the U.S. Court of Appeals for the Ninth Circuit revived the case in 2017. Apple appealed with the Supreme Court, which will rule whether the case should proceed after hearing an hour of arguments today.

From the start, Apple has argued that it doesn't set prices for paid apps, and that charging a 30 percent commission on the distribution of paid apps and in-app purchases does not violate antitrust laws in the United States. Last year, the U.S. Department of Justice filed an amicus brief in support of Apple.

The plaintiffs, meanwhile, are backed by 30 state attorneys general, including those representing Texas, California, and New York. The Supreme Court is expected to make its ruling by June 2019.

Popular Stories

iOS 26

15 New Things Your iPhone Can Do in iOS 26.2

Friday December 5, 2025 9:40 am PST by
Apple is about to release iOS 26.2, the second major point update for iPhones since iOS 26 was rolled out in September, and there are at least 15 notable changes and improvements worth checking out. We've rounded them up below. Apple is expected to roll out iOS 26.2 to compatible devices sometime between December 8 and December 16. When the update drops, you can check Apple's servers for the ...
iPhone 14 Pro Dynamic Island

iPhone 18 Pro Leak Adds New Evidence for Under-Display Face ID

Monday December 8, 2025 4:54 am PST by
Apple is actively testing under-screen Face ID for next year's iPhone 18 Pro models using a special "spliced micro-transparent glass" window built into the display, claims a Chinese leaker. According to "Smart Pikachu," a Weibo account that has previously shared accurate supply-chain details on Chinese Android hardware, Apple is testing the special glass as a way to let the TrueDepth...
iOS 26

Apple Seeds Second iOS 26.2 Release Candidate to Developers and Public Beta Testers

Monday December 8, 2025 10:18 am PST by
Apple today seeded the second release candidate version of iOS 26.2 to developers and public beta testers, with the software coming one week after Apple seeded the first RC. The release candidate represents the final version iOS 26.2 that will be provided to the public if no further bugs are found. Registered developers and public beta testers can download the betas from the Settings app on...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Monday December 1, 2025 2:40 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
Johny Srouji

Apple's Chipmaking Chief Johny Srouji Responds to Report About Him Potentially Leaving

Monday December 8, 2025 9:23 am PST by
Apple's chipmaking chief Johny Srouji has reportedly indicated that he plans to continue working for the company for the foreseeable future. "I love my team, and I love my job at Apple, and I don't plan on leaving anytime soon," said Srouji, in a memo obtained by Bloomberg's Mark Gurman. Here is Srouji's full memo, as shared by Bloomberg:I know you've been reading all kind of rumors and...
Johny Srouji

Apple Chip Chief Johny Srouji Could Be Next to Go as Exodus Continues

Sunday December 7, 2025 10:41 am PST by
Apple's senior vice president of hardware technologies Johny Srouji could be the next leading executive to leave the company amid an alarming exodus of leading employees, Bloomberg's Mark Gurman reports. Srouji apparently recently told CEO Tim Cook that he is "seriously considering leaving" in the near future. He intends to join another company if he departs. Srouji leads Apple's chip design ...
Foldable iPhone 2023 Feature 1

Apple to Make More Foldable iPhones Than Expected

Tuesday December 9, 2025 9:59 am PST by
Apple has ordered 22 million OLED panels from Samsung Display for the first foldable iPhone, signaling a significantly larger production target than the display industry had previously anticipated, ET News reports. In the now-seemingly deleted report, ET News claimed that Samsung plans to mass-produce 11 million inward-folding OLED displays for Apple next year, as well as 11 million...
Intel Inside iPhone Feature

Apple's Return to Intel Rumored to Extend to iPhone

Friday December 5, 2025 10:08 am PST by
Intel is expected to begin supplying some Mac and iPad chips in a few years, and the latest rumor claims the partnership might extend to the iPhone. In a research note with investment firm GF Securities this week, obtained by MacRumors, analyst Jeff Pu said he and his colleagues "now expect" Intel to reach a supply deal with Apple for at least some non-pro iPhone chips starting in 2028....
google pixel 10

Switching Between iPhone and Android Will Get Easier With New Apple and Google Collaboration

Monday December 8, 2025 11:10 am PST by
Apple and Google are teaming up to make it easier for users to switch between iPhone and Android smartphones, according to 9to5Google. There is a new Android Canary build available today that simplifies data transfer between two smartphones, and Apple is going to implement the functionality in an upcoming iOS 26 beta. Apple already has a Move to iOS app for transferring data from an Android...
Apple Fitness Plus expansion hero

Apple Fitness+ Coming to 28 New Regions With Digital Voice Dubbing

Monday December 8, 2025 6:19 am PST by
Apple today announced that Fitness+ is expanding to 28 new markets on December 15 in the service's largest international rollout since launch, accompanied by new language dubbing and a K-Pop music genre. Apple Fitness+ will become available in Chile, Hong Kong, India, the Netherlands, Singapore, Taiwan, and additional regions on December 15, with Japan scheduled to follow early next year....

Top Rated Comments

jonblatho Avatar
92 months ago
Alternate headline:

People with Little or No Understanding of Technology Demonstrate Little or No Understanding of Technology
Score: 49 Votes (Like | Disagree)
JeffPerrin Avatar
92 months ago
Basis of this case is so opposite of what actually happened: the race to the bottom in terms of app pricing.

And for those wondering, some of what Apple's 30% pays for for devs:

- Credit card transactions (incl. associated fees)
- Managing sales tax - local and international (!!!)
- Distribution (server and bandwidth costs)
- Sales and installation analytics
Score: 39 Votes (Like | Disagree)
jclardy Avatar
92 months ago
That 30% commission is pretty hefty but allowing apps to be sold outside the appstore and installed on iPhones without being jailbroken would pretty much ruin the edge Apple has on security and privacy it would seem.
I disagree. Just make it like macOS where you have to explicitly allow unsigned code to run on your computer. And leave it off by default.
Score: 34 Votes (Like | Disagree)
barkomatic Avatar
92 months ago
That 30% commission is pretty hefty but allowing apps to be sold outside the appstore and installed on iPhones without being jailbroken would pretty much ruin the edge Apple has on security and privacy it would seem.
Score: 29 Votes (Like | Disagree)
AppliedVisual Avatar
92 months ago
As an app developer, all I can say is that the App Store is a win/win situation for developers and Apple. I also don't think the customer is impacted negatively in any way. The App Store offers assurances on some level that the apps are checked and monitored to be free from malware and they have a singular purchase and billing source and way to manage all their apps. Prices are hardly over-inflated, in fact software/app prices are at all-time lows. I would also argue that the law suit was filed a bit over 8 years ago and is now starting to proceed... Timing on this is now awkward and the suit needs to be updated drastically or dropped altogether. Google has the same "monopoly" with their store as well. If anyone wants to go after illicit software practices or App Store shenanigans of sorts, they need to take a look at the in-app purchase models being used by many developers. Some of these are quite predatory and targeted at kids.

FWIW, as most of my app development is corporate in nature, I have to say that not everything must be distributed through the App Store. There are enterprise deployment options. While this doesn't change things for Joe Consumer, it does mean that when a company hires me to create an app for internal use, we can develop, test and deploy internally without ever touching the App Store and I can turn the app over to them at the end of the contract where they can continue to administer and deploy as they see fit.

Ultimately I see this suit going nowhere. SCOTUS has historically sided with multiple companies accused of the same sort of monopoly. Apple created the platform, they created their ecosystem and there are other alternatives out there. Apple has already won a similar suit regarding iTunes music distribution and AT&T and Verizon have both won similar suits in the past with their own services and music offerings (although on a much smaller scale) before smartphones/ iPhone came along.

And if this suit progresses through, then we as a collective society may as well file suit against Microsoft, Google, Sony, Nintendo, and so on... As they all have their "app stores" for various devices or systems. I can't just download any app/game I want and run it on my Nintendo Switch -- nope, got to get it from the eShop. PlayStation Store? Yep. Xbox Live? Yep.
Score: 19 Votes (Like | Disagree)
jayducharme Avatar
92 months ago
I have a suggestion for Pepper: get an Android phone.
Score: 18 Votes (Like | Disagree)