The US Supreme Court will hear arguments Monday alleging that Apple uses its dominance to hunt up the prices for iPhone apps, "Greg Stohr and Naomi Nix Report for Bloomberg." A decision against Apple, let a lawsuit go Further, add to the press the company is already faced with to cut 30 percent commission it charges on app sales. "

"The case turns out what happens when iPhone users buy something on the Apple App Store. By allowing the suit, a federal appeal court said that the transaction is a simple one that consumers buy directly from Apple. Apple says it's more complicated , with the company as an intermediary that connects app developers with users, "Stohr and Nix Report. "The distinction is critical because of a Supreme Court ruling in 1

977, which states that only direct purchasers of a product can collect compensation for overpricing under federal antitrust law. The decision was partially designed to ensure that companies do not have to pay twice for the same default. "

" Apple says the case processing is 30 percent commission, which it says is paid by developers, not the app buyers, "Stohr and Nix report. "Although consumers say they pay for the commissions through higher apprices, Apple says that it is the type of pass-through injury that has been ruled out by the Supreme Court 1977 Illinois Brick v. Illinois decision."

Read more in the full article here.

MacDailyNews Take:

By removing the security implications, the Ninth Circuit decision should be reversed only because Apple's App Store customers are app developers, not the app consumers.

Apple owns the mall. Developers pay Apple for space within. The end user buys his apps from the developers. Indirect buyers of goods or services across a supply chain can not seek compensation for antitrust requirements.

See Illinois Brick Co. v. Illinois. – MacDailyNews, October 31, 2018

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