Apple’s App Store Antitrust Fight Is Back On

Apple's App Store Antitrust Fight Is Back On - Professional coverage

According to 9to5Mac, the 9th U.S. Circuit Court of Appeals has granted a petition to review a lower court’s decision, effectively reviving a massive antitrust class action lawsuit against Apple. The case, In re Apple iPhone Antitrust Litigation, was originally filed in 2022 and accuses Apple of illegally monopolizing the iPhone app market. U.S. District Judge Yvonne Gonzalez Rogers initially certified the class in 2024, then reversed herself and decertified it last October after Apple challenged the plaintiffs’ damages model. The newly revived appeal will proceed under a specific rule, Rule 23(f), meaning the court will only review the class certification decision itself. The plaintiffs’ lawyers now have 14 days to formally file their appeal, and the outcome could either reinstate the class action or send it back to the lower court.

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Here’s the thing about this case: it’s a perfect example of legal whiplash. Judge Rogers has basically changed her mind on the class certification twice. First she said no, then she said yes (but only for account holders who spent $10 or more), then she said no again. That last reversal in October 2023 was a huge win for Apple‘s legal team, who successfully argued that the plaintiffs’ method for calculating damages for everyone in the proposed class was flawed. So the case was essentially broken back down into a bunch of individual claims, which is a death knell for this kind of antitrust challenge. But now the 9th Circuit is stepping in to see if that decertification was the right call. It’s a high-stakes procedural game.

business”>Why This Matters For Apple’s Business

Let’s cut to the chase. This isn’t just legal esoterica. The App Store is a massive profit center for Apple, and its “walled garden” model is the foundation of that revenue. Services, which includes the App Store cut, is Apple’s second-largest business segment and its most reliable growth engine as hardware sales fluctuate. A successful class action could threaten the fundamental 15-30% commission structure. That’s the real fear for Apple. They’ve already made concessions in Europe due to new regulations, and they’re fighting similar battles globally. A loss here in a U.S. court, the heart of their home market, would be a devastating precedent. It would open the door to potentially billions in damages and force a rethink of their entire software distribution strategy.

The Long Road Ahead

So what happens now? The appeal is moving forward, but it’s crucial to remember what’s not being argued yet. The 9th Circuit is only looking at whether the case can proceed as a class action. They are not, at this stage, judging whether Apple actually broke any antitrust laws. That’s a whole other mountain to climb. Even if the plaintiffs win this appeal and the class is recertified, we’re still looking at years more of litigation before any potential trial on the actual merits. Apple has deep pockets and an incredibly motivated legal department. They will fight this at every single turn. But for the plaintiffs, getting the class action status back is everything. Without it, their leverage disappears. Now, they’ve at least bought themselves another shot. The game is back on.

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