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Antitrust Keyed to Gavil, 5th Ed.
Apple Inc. v. Pepper
Citation:
139 S. Ct. 1514, 587 U.S. __, 203 L.Ed.2d 802 (2019)Facts
In 2008, Apple launched the App Store, the only place where iPhone owners can lawfully purchase apps. Apple charges app developers a $99 annual fee to sell through the App Store and takes a 30% commission on each sale. Apple does not create most apps but contracts with independent developers who set their retail prices (with Apple requiring prices to end in $0.99). In 2011, four iPhone owners sued Apple, alleging it unlawfully monopolized the iPhone apps aftermarket. They claimed Apple’s exclusive marketplace and 30% commission resulted in higher app prices than would exist in a competitive environment. Apple argued that consumers lacked standing to sue because app developers, not Apple, set the prices consumers paid, making consumers indirect purchasers under Illinois Brick.
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