Apple Faces US Supreme Court to Defend App Store Commission Rates

Apple has gone before the US Supreme Court after claims that it is violating anti-trust laws by taking 30% commission from every sale made on the App Store.

This is the latest development in a seven-year battle in which consumers have claimed that Apple has monopolised the industry, because there is no other place to purchase iOS apps.

Users of Android devices have multiple options when it comes to downloading apps – including the Google Play Store, Samsung Galaxy Apps and the Amazon Appstore.

Representatives of Apple are adamant there are no grounds for a case because developers set the prices of the apps themselves.

However, plaintiffs acting on behalf of iPhone customers claim the high commission rates force developers to sell their products at a greater price.

The verdict could be delivered as late as June next year. Apple is warning that a negative result for them would also have a knock-on effect on other leading technology companies.

The sale of Apple-branded hardware is beginning to slow down so the company is becoming more and more reliant on it’s App Store commission.

Jack Kent, an analyst from IHS Markit, said to the BBC: “The Services category – which includes App Store commissions – is now Apple’s second biggest driver of revenue after iPhone sales and has been its fastest growing source of revenues.

“As many of Apple’s device categories mature, services are vitally important as a means of driving incremental revenue after the device sale and also for tying users in to Apple’s ecosystem of devices, apps and services.”

In the first half of 2018, the App Store generated double the revenue of the Google Play Store at $22.6 billion.

Read more here.