Business

Apple plans to head to Supreme court to defend its platform from monopoly abuse

Apple will be heading towards the Supreme court so that it is able to block a group of customers from using them for monopoly abuse. Apple will be battling with a group of iPhone users who claims that Apple is overcharging its customers to overpay for applications that are designed by its rivals.

The customers were able to launch a class action suit against Apple in 2017. Apple will finally appear in front of the court to describe their part of the story and justify that the applications are not overpriced.

If Apple is not able to justify their pricing, then they will not be able to maintain their business model. The Application store is the fastest growing division of Apple and a lot of revenue is generated from the Application store.

Apple generally makes billions of dollars from the app store and only 30 percent of the profits are shared with the app developers. The app revenue has seen a steady growth in the years and right now it is a $38.5 billion market.

According to the customers, who have filed the lawsuit, the sizeable commission is the evidence that Apple exploits its powers since it is in a monopoly situation right now. iPhone consumers have paid millions of dollars in this market.

Apple, at present, arguing that the price that is set is generally decided by the app developers and Apple does not interfere in that matter by any means.