Supreme Court Allows App Store Monopoly Lawsuit Against Apple to Proceed [Updated]

The U.S. Supreme Court on Monday ruled 5-4 against Apple in an anticompetitive case involving the App Store, allowing iPhone users to move forward with their class action lawsuit against the company, as first reported by CNBC.

app store monopoly
From the Supreme Court's ruling:

In this case, however, several consumers contend that Apple charges too much for apps. The consumers argue, in particular, that Apple has monopolized the retail market for the sale of apps and has unlawfully used its monopolistic power to charge consumers higher-than competitive prices.

A claim that a monopolistic retailer (here, Apple) has used its monopoly to overcharge consumers is a classic antitrust claim. But Apple asserts that the consumer plaintiffs in this case may not sue Apple because they supposedly were not "direct purchasers" from Apple under our decision in Illinois Brick Co. v. Illinois, 431 U. S. 720.

We disagree. The plaintiffs purchased apps directly from Apple and therefore are direct purchasers under Illinois Brick. At this early pleadings stage of the litigation, we do not assess the merits of the plaintiffs' antitrust claims against Apple, nor do we consider any other defenses Apple might have. We merely hold that the Illinois Brick direct-purchaser rule does not bar these plaintiffs from suing Apple under the antitrust laws. We affirm the judgment of the U. S. Court of Appeals for the Ninth Circuit.

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.

In other words, the ‌iPhone‌ users 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 then appealed with the Supreme Court.

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. In 2017, the U.S. Department of Justice filed an amicus brief in support of Apple.

Update: Apple has issued a statement (via John Packzowski) regarding the decision:

Today's decision means plaintiffs can proceed with their case in District court. We're confident we will prevail when the facts are presented and that the App Store is not a monopoly by any metric.

We're proud to have created the safest, most secure and trusted platform for customers and a great business opportunity for all developers around the world. Developers set the price they want to charge for their app and Apple has no role in that. That vast majority of apps on the App Store are free and Apple gets nothing from them. The only instance where Apple shares in revenue is if the developer chooses to sell digital services through the App Store.

Developers have a number of platforms to choose from to deliver their software — from other apps stores, to Smart TVs to gaming consoles — and we work hard every day to make our store is the best, safest and most competitive in the world.

The Supreme Court's full ruling is embedded ahead.

Popular Stories

iOS 26

Everything New in iOS 26.2 Beta 3

Monday November 17, 2025 3:20 pm PST by
Apple provided developers with the third beta of an upcoming iOS 26.2 update, and there are still new features that are being added with each beta that we get. We've rounded up all of the changes that Apple made in beta 3. AirDrop Apple added new AirDrop functionality, providing a way for two people to share files temporarily without having to add one another as contacts. iOS 26.2...
applecare apple care banner

Apple Brings New AppleCare+ Options to India

Tuesday November 18, 2025 8:42 am PST by
Apple today announced an expansion of AppleCare+ coverage in India, with new options for monthly and annual plans, and the addition of Theft and Loss for iPhone for the first time. Options for monthly and annual AppleCare+ plans in India provide more choice and flexibility, allowing users to keep coverage for as long as they require. Apple's vice president of Worldwide iPhone Product...
iPhone 17 Pro Cosmic Orange

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

Wednesday November 19, 2025 4:00 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...
Apple Wallet ID Illinois

iPhone Driver's License Feature Launching in Illinois

Tuesday November 18, 2025 8:47 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Starting this Wednesday, November 19, the feature will be available to residents of Illinois. The announcement confirmed that the...
iPhone 17 Pro and Air N1 Feature

iPhone 17 vs. iPhone 16 Wi-Fi Speeds: New Study Reveals the Winner

Tuesday November 18, 2025 10:53 am PST by
A new study has revealed that the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air achieve significantly faster average Wi-Fi speeds compared to the iPhone 16 series, thanks to Apple's custom-designed N1 chip. The study was conducted by Ookla, the company behind the popular Speedtest website and app. It said the results are based on global, crowdsourced Speedtest user data...
ipad mini 7 feature red and blue

iPad Mini 8: Four Major New Features to Expect

Wednesday November 19, 2025 7:50 am PST by
Apple's eighth-generation iPad mini is highly likely to arrive next year, offering a significant refresh of the device with at least four major new features. OLED Display The next-generation version of the iPad mini could feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple Watch in 2015, ...
macbook black friday

The Best Early Black Friday Mac Deals

Tuesday November 18, 2025 7:32 am PST by
We're getting closer to Black Friday, which lands next week on Friday, November 28. In the lead-up to the shopping holiday, we're tracking a few lowest-ever prices on Apple's most popular Macs, including the M4 MacBook Air and brand new M5 MacBook Pro. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment,...
Magic Keyboard Touch ID Feature

Apple Releases New Firmware for 140W USB-C Power Adapter, Magic Keyboard and Magic Trackpad

Tuesday November 18, 2025 1:05 pm PST by
Apple today released updated firmware for several accessories, including the 140W USB-C Power Adapter, the Magic Trackpad 2, the Magic Trackpad USB-C, the Magic Keyboard with Touch ID, and the Magic Keyboard with Touch ID and Numeric Keypad. There is no word on what's included in the updated firmware at this time, but it could offer performance improvements and security updates. Accessory...
best early black friday deals

Best Black Friday Apple Deals Live Now - Save on AirPods, iPads, and Apple Watches

Saturday November 15, 2025 1:45 pm PST by
We're officially in the month of Black Friday, which will take place on Friday, November 28 in 2025. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When ...
Apple Sports App Preview Feature

Apple Sports App on iPhone Now Available in More European Countries

Monday November 17, 2025 6:27 am PST by
The free Apple Sports app on the iPhone was released in additional European countries today, including Belgium, Croatia, Czechia, the Netherlands, Luxembourg, Poland, Hungary, Denmark, Finland, Norway, Sweden, Switzerland, Slovakia, Slovenia, Serbia, Greece, Estonia, Latvia, Romania, Ukraine, and others. The app was already available in the U.S., the U.K., Canada, Austria, France, Germany,...

Top Rated Comments

johnrlaporta Avatar
85 months ago
How ridiculous. If they stopped charging the 30%, the companies would just keep the price the same and pocket the 30% Who wouldn't?
Score: 46 Votes (Like | Disagree)
macjoshua Avatar
85 months ago
They can always buy an Android phone if they want a more open and potentially insecure way of getting apps.
Score: 45 Votes (Like | Disagree)
Rogifan Avatar
85 months ago
Good. It IS a monopoly.

As I've said repeatedly, it's not Apple's iPhone, it's MY iPhone. I should have the choice to install apps from whatever source I desire, and I shouldn't have to go through ridiculous machinations with Xcode every week to do it.
It’s not though. You’re basically buying a license to software that comes with an end user license agreement (EULA) which dictates what can and can’t be done with the software. It’s not a monopoly because one can easily buy something else.
Score: 44 Votes (Like | Disagree)
Victor Mortimer Avatar
85 months ago
Good. It IS a monopoly.

As I've said repeatedly, it's not Apple's iPhone, it's MY iPhone. I should have the choice to install apps from whatever source I desire, and I shouldn't have to go through ridiculous machinations with Xcode every week to do it.
Score: 36 Votes (Like | Disagree)
TimFL1 Avatar
85 months ago
Will be interesting to see how this plays out....
It wont. This will go nowhere, platform holders take cuts everywhere (console stores, Steam, Epic Store, literally any marketplace on earth does so to finance the delivery of said content).
30% is the average fee, it‘s ugly but everyone does it.

I, for one, am against having other places than the App Store for app distribution. One unified place to get your apps (securely and up-to-date) from beats out the mess you find on Android.
Score: 33 Votes (Like | Disagree)
Rogifan Avatar
85 months ago
No You can’t!
Because apple has a walled garden too. If You have a watch?
Again no one is personally forced to own any Apple product.
Score: 24 Votes (Like | Disagree)