Last week, the Supreme Court heard arguments in Apple v. Pepper, a case brought by consumer interests complaining that Apple has illegally monopolized app sales for the iPhone. A decision against Apple could expose the company to billions of dollars in antitrust damages liability (antitrust damages remedies are tripled), implicating app store operations and policies. Apple says app developers -- not consumer purchasers -- have the legal right to sue the company under current Supreme Court precedents.
Ultimately, Apple contends, the fight boils down to allegations that Apple's 30% commission on app store sales is an anti-competitive overcharge passed through to consumers. Apple explains that app developers set the app prices and Apple merely acts as an agent for transactions. This is a fight for app store developers, according to Apple, not consumer purchasers. Thus far, however, app developers have not sued Apple under the antitrust laws. Consumers complain that app developers are not likely to bite the monopoly hand that feeds them.
A lower appellate court ruled against Apple and the company sought Supreme Court review. We attended last week's lively Supreme Court argument. We'll provide an overview of the case and our view of the likely outcome. The case could be decided early next year. We hope you will join us.
Participating Dialing Instructions:
Tuesday, December 4, 2018 at 2:30 pm ET
Toll-Free:
Toll:
UK: 0
Confirmation Number: 13685561
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* Note: This analyst owns shares in Apple (AAPL).