Tag: iTunes

by Kevin Daley   The Supreme Court ruled Monday that iPhone users can bring an antitrust lawsuit against Apple alleging the tech giant has monopolized the market for software applications. Justice Brett Kavanaugh delivered the 5-4 decision, joined by the high court’s liberal bloc, which may have far-reaching consequences for Silicon Valley. “The plaintiffs seek to hold retailers to account if the retailers engage in unlawful anticompetitive conduct that harms consumers who purchase from those retailers,” Kavanaugh wrote. “That is why we have antitrust law.” The iPhone app market is a tightly-controlled system. iPhones are programmed so they cannot download apps outside the Apple-administered App Store, and users who modify their devices to download apps from other sources — called jailbreaking — risk adverse consequences like voiding their warranty. What’s more, Apple has broad discretion over products in its store, and may remove apps for any reason whatever. Other requirements include a mandate to price all apps on a .99 scale, like $1.99 and $2.99. When an application is purchased, Apple collects a 30 percent commission and gives the other 70 percent to the developer. For subscriptions, Apple collects a 15 percent share after the first year. Taken together, the plaintiffs say…