In a groundbreaking decision, a federal judge recently greenlit a class action against Apple, allowing tens of millions of customers to proceed with claims accusing the tech giant of monopolizing the iPhone app market. The core allegation is that Apple, by restricting app purchases solely to its App Store, has artificially inflated prices for consumers.
U.S. District Judge Yvonne Gonzalez Rogers, who had previously denied class certification in March 2022, reversed her stance. The class was refined to include only Apple account holders who spent $10 or more on apps or in-app content. While expressing reservations about the potential inclusion of over 10 million accounts that may not have suffered harm, Rogers asserted that this number could be further narrowed, emphasizing the absence of a fixed “cutoff” for denying certification.
Apple’s attempt to exclude testimony from two expert witnesses, including Nobel Prize-winning economist Daniel McFadden, was also rejected by Judge Rogers. The testimony aimed to shed light on how Apple’s practices might have adversely affected consumers.
Apple, headquartered in Cupertino, California, has not provided an immediate response to the recent developments.
Mark Rifkin, legal representative for the consumers, expressed his satisfaction with the ruling and anticipated the next phase of the 12-year-old antitrust case. He estimated that the class had incurred “billions of dollars in damages.” Class actions, he noted, offer a more cost-effective route for plaintiffs, potentially resulting in greater recoveries compared to individual lawsuits.
Judge Rogers, who previously presided over the Epic Games antitrust case against Apple, issued orders in September 2021 to relax restrictions on where developers could seek payment from customers. However, she did not compel Apple to permit app downloads to iPhones outside its App Store. A federal appeals court largely upheld this ruling in April 2023, with the U.S. Supreme Court declining involvement last month.
The case, officially titled “In re Apple iPhone Antitrust Litigation,” is being heard in the U.S. District Court for the Northern District of California, with case number 11-06714.
This significant legal development marks a pivotal moment in the ongoing scrutiny of tech giants and their market practices.
