Apple Escapes Major Payout As US Judge Overturns Longstanding App Store Lawsuit

A class action lawsuit that alleged Apple Inc.‘s (NASDAQ:AAPL) monopoly over the iPhone app market involving millions of customers has been decertified by a U.S. federal judge.

Plaintiffs’ Model Flawed, Judge Says

U.S. District Judge Yvonne Gonzalez Rogers reversed her previous class certification ruling from February 2024. This ruling had allowed Apple account holders who had spent $10 or more on app or in-app content in the last 17 years to sue as a group, reported Reuters.

The lawsuit was filed in December 2011 and involved a class of users of iOS devices dating back to July 10, 2008.

Rogers’ decision to decertify the class came after the plaintiffs failed to present a reliable model demonstrating classwide injury and damages. This decision was made after an Apple-hired expert found significant errors in the plaintiffs’ model, including misidentification of claimants and inconsistent grouping of payment records.

Mark Rifkin, the plaintiffs' attorney, told Reuters they were disappointed with the ruling and are now evaluating their next legal steps. The plaintiffs claimed Apple's alleged monopoly led to "excessive commissions" on app developers, costs that were ultimately passed on to consumers through higher app prices.

Apple did not immediately respond to Benzinga‘s request for comment.

Rising Global Antitrust Pressure

This decision comes in the wake of a recent loss for Apple in the U.K., where the tech giant was accused of “abusing its dominant position by charging app developers an unfair 30% commission through its app store.” The U.K.'s Competition Appeal Tribunal (CAT) ruled against Apple, a decision that could potentially reshape the tech industry.

Additionally, Apple is facing a new antitrust suit in China, one of its key markets. This could potentially slow down its progress in the region. The lawsuit alleges that Apple holds a monopoly over its iOS app ecosystem in China by "forcing users to purchase digital goods only through its in-app purchase system," limiting how iOS apps can be downloaded, and charging commissions of up to 30% on in-app transactions.

Benzinga's Edge Rankings place Apple in the 76th percentile for quality and the 69th percentile for value, reflecting its strong performance in both areas. Check the detailed report here.

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