Apple Inc. Case Revived by Federal Appeals Court – iPhone Apps Monopoly Issue

iPhone apps app store monopoly court ruling lawsuit

The 9th U.S. Circuit Court of Appeals on Thursday overturned a lower court’s decision to dismiss a case against Apple Inc. which stated that Apple was monopolizing iPhone app sales.

The federal appeals court has now ruled that “the plaintiffs have the right to sue Apple because they purchased apps directly from the company.” Apple, in its defense, had stated that it merely acts as an “intermediary” between the app developers and iPhone owners purchasing the apps.

However, the original lawsuit says that Apple only allows iPhone apps to be sold through the App Store, and that Apple gets 30% of all proceeds from the sale of apps developed by third-party developers.

This could put a major spoke in Apple’s wheels because a significant portion of its revenues come from the sale of apps as well as in-app purchases.

According to ABC News, an email to Apple was not immediately returned.

This is the iPhone’s 10th anniversary year, and the App Store has been around for almost as long. With the appeals court now overturning the earlier ruling, it could open up a Pandora’s Box of legal issues for Apple.

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