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Apple faces risk from the Supreme Court antitrust suit



<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " AAPL ) shares slide on news of hardware unfortunately, supplier cutbacks and threats of added US tariffs on Chinese-manufactured goods, the viability of the company's multibillion-dollar services division could pose a more existential threat depending on the outcome of "data-reactid =" 22 "> As Apple (AAPL) shares slide on news of hardware unfortunate supplier cutbacks and threats of added US tariffs on Chinese-manufactured goods, the viability of the company's multibillion-dollar services division could pose a more existential threat, depending on the outcome of a forthcoming decision by the Supreme Court.

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1; sm Mt (0.8em) – sm "type =" text "content =" Apple's lucrative App Store, part of its services arm that generated $ 37.2 billion [19659003] & nbsp; in fiscal year 2018, is the subject of a would-be antitrust class action that, if allowed to go forward, threatens profits for the division that is increasingly relied upon to counter-slow demand for mobile phones. "data-reactid =" 23 "> Apple's lucrative App Store, part of its services arm that generated $ 37.2 billion in fiscal year 2018, is the subject of a would-be antitrust class action that , if allowed to go forward, the threat's profits for the division that are increasingly relied upon to cou

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " The issue is a group of iPhone consumers who say App Store revenues are, at least in part, the ill-gained gains of an illegal monopoly. "data-reactid =" 24 "> At at the consumer store the App Store is controlling retail prices by charging developers a 30% commission passed to app purchasers who have no alternative market in which to purchase iPhone apps. Apple Inc., Inc., is a group of iPhone consumers who say App Store revenues are, at least in part, the ill-gained gains of an illegal monopoly. The consumers allge the App Store is controlling retail prices by charging developers a 30% commission passed on to app

A loss that could cost Apple billions

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – -sm Mt (0.8em) – sm "type =" text "content =" If the Supreme Court allows the case to move forward, and Apple loses trial, it could be a punishing blow. & nbsp; App Store sales are estimated to account for about 37% of the company's projected total annual revenue revenue of $ 46 billion in fiscal year 2019, a ccording to a November 26 analyst's report from Bank of America Merrill Lynch. Under a scenario where the App Store Commission drop just 5% from the current rate of 30%, the analysts predict a 17% drop in App Store revenue, or a loss of $ 2.8 billion. "data-reactid =" 26 "> App Store sales are estimated to account for about 37% of the company's projected total annual revenue revenue of $ 46 billion in. If the Supreme Court allows the case to move forward, and Apple loses trial, it could be a punishing blow. fiscal year 2019, according to a November 26 analyst's report from Bank of America Merrill Lynch. Under a scenario where App Store commissions drop just 5% from the current rate of 30%, the analysts predict a 17% drop in App Store revenue, or a loss of $ 2.8 billion.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Regardless of whether the app store is or is not an illegal monopoly, the justices are faced with a more preliminary question: Whether iPhone users have a right, or "sta In 1965, the Supreme Court ruled in Illinois Brick v. Illinois that only direct purchasers, or those who suffer immediate harm from allegedly monopolistic conduct, may bring a claim for damages under anti-competitive laws. "data-responseid =" 27 "> Regardless of whether the app store is or is not an illegal monopoly, the justices are faced with a more preliminary question: Whether iPhone users have a right, or" standing,

In 1977, the Supreme Court ruled in Illinois Brick v. Illinois that only direct purchasers, or those who suffer immediate harm from allegedly monopolistic conduct, may bring a claim for damages under anti-competitive laws.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Apple and app developers argue App Store buyers are indirect buyers with no right to sue, but if the Supreme Court allows the claim to go forward, Apple will have to defend its services empire within a new antitrust landscape. "data-reactid =" 28 "> Apple and app developers argue App Store buyers are indirect buyers with no right to sue, but if th e Supreme Court allows the claim to go forward, Apple will have to defend its services empire within a new antitrust landscape.

The key question the Supreme Court must decide

<p class = "canvas atomic canvas -text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" The Supreme Court's key question is whether Apple is setting or controlling the retail price, according to & nbsp; George Hay, professor of law at Cornell Law School, and a leading authority on antitrust law. "data-responseid =" 30 "> The Supreme Court's key question is whether Apple is setting or controlling the retail price, according to George Hay, professor of law at Cornell Law School, and a leading authority on antitrust law.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" "Antitrust places no restrictions on the ability of a single company to charge whatever it wants," Hay said. "Of course a commission drives the price up." "data-reactid =" 31 "> " Antitrust places no restrictions on the ability of a single company to charge whatever it wants, "Hay said." Or course a commission drives the price up. "

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content = " For their part, iPhone consumers suing Apple argues that its price categories require prices to end for example in 99-cent increments equal to the retail price. & Nbsp; " A lot of it smells like it's Apple not just charging the developer a commission, which they are allowed to do, but somehow controlling the retail process and retail price, "Hay said. " data-reactid = "32"> For their part, iPhone consumers suing Apple argues that its price categories require prices to end for example in 99-cent increments equal to the retail price. "A lot of it smells like it's Appl I'm just charging the developer a commission, which they are allowed to do, but somehow controlling the retail process and retail price, "Hay said.

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Interestingly, the app industry – which gets charged the 30% commission – seems to be coming out on Apple's side. & Nbsp ; The App Association, which represents more than 5,000 Apple and Android apps, & nbsp; filed an amicus letter in support of Apple, and its president, Morgan Reed, contended that Apple does not actually control the price for apps. He noted, as evidence of this lack of control, that Apple allows developers to offer free apps in the store. "data-reactid =" 33 "> Interestingly, the app industry – which gets charged the 30% commission The App Association, which represents more than 5,000 Apple and Android apps, filed an amicus letter in support of Apple, and its president, Morgan Reed, contended that Apple does not actually

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (1.0em) Mb (1.0em) Mb (1.0em) Mb (1.0em) 0) – sm Mt (0.8em) – sm "type =" text "content =" Moreover, n early all of the app developers the App Association represents sell on both platforms, Reed said. Despite the fact that, according to among others, study by SensorTower the App Store has been pulling in almost double the revenue of its closest competitor, Google Play, Reed contends, & nbsp; "There's not a dominant monopoly in the handset or tablet space. "" data-reactid = "34"> Additionally, n early all of the app developers the App Association represents sell on both platforms, Reed said. fact that, according to among others, study by SensorTower the App Store has been pulling in almost double the revenue of its closest competitor, Google Play, Reed contends, "There's not a dominant monopolist in the handset or tablet space. "

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content = "" It's very easy to talk about a high-profile company like Apple, to see it as a big company and therefore it dictates terms, "reed said, emphasizing that Developers are a powerful community numbering hundreds of thousands strong who can take action against Apple if it decides the commission. "Rent is just too damn high." Apple customers say, are more likely to pay upfront for apps than Android users. "data-reactid =" 35 "> " It's very easy to talk about a high-profile company like Apple, to see it as a big company and therefore it dictates terms, "Reed said, emphasizing that developers are a Powerful community numbering hundreds of thousands strong that can take action against Apple if it decides the commission. "Rent is just too damn high." Apple customers, he says, are more likely to pay upfront for apps than Android users.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Reed says developers receive benefits in exchange for commissions charged by Apple and Google Play, such as reduced overhead costs, lawsuit avoidance, copyright and intellect lectual property dispute protection, et platform som brugerne har tillid til sikre data og kreditkortbehandling. They play a role of "convener," Reed said, which promotes efficiency and cost savings for developers and consumers. "data-reactid =" 36 "> Reed says developers will receive benefits in exchange for commissions charged by Apple and Google Play, such as reduced overhead costs, lawsuit avoidance, copyright and intellectual property dispute protection, a platform that users trust to secure data and credit card processing. They play a role of "convener," Reed said, which promotes efficiency

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt 0.8em) – sm "type =" text "content =" Reed said the advent of app-based software drove down the average price upfront paid for software from around $ 50 for boxed software to around $ 3. "data-reactid =" 41 "> Reed said the advent of app-based software drove down the average price upfront paid for software from around $ 50 for boxed software to around $ 3. He reasons that developer costs would skyrocket if they were required to build solutions and marketing plans for dozens of app stores.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" "If the outcome was a dissolution of the App Store that's catastrophic for developers , "Reed said. "Now you'd be out there as a developer as an island on the internet." "data-reactid =" 42 "> " If the outcome was a dissolution of the App Store that's catastrophic for developers, "Reed said." Now you'd be out there as a developer as an island on the internet. "

Now that the case has been argued in the Supreme Court, the justices could issue a decision any time between nu og i slutningen av sin term, denne sommeren. Hvis den høje domstolen tillader det at fortsætte som en klassehandling, kan det være år før en endelig afgørelse kommer ned. it loses the potential case.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[19659033] Alexis Keenan is a New York-based reporter for Yahoo Finance. She previously produced live news for CNN and is a former litigation attorney. & nbsp; Follow here on Twitter at & nbsp; @alexiskweed
"data-responseid =" 44 "> [19659033] Alexis Keenan is a New York-based reporter for Yahoo Finance. She previously produced live news for CNN and is a former litigation attorney. Follow her on Twitter at @alexiskweed

] <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Follow Yahoo Finance on & nbsp;


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