Don't Let Antitrust Suit Against Apple Proceed, Solicitor General, Tech Interests Tell High Court

Allowing a class-action antitrust lawsuit to proceed against Apple, alleging it monopolized distribution of App Store applications, would harm competition, the Computer & Communications Industry Association argued in a Supreme Court filing Friday. Others, including the government, concurred. The high court agreed (see 1806180053) to hear Apple's appeal of the 9th U.S. Circuit Court of Appeals ruling that the suit could proceed. Upholding the ruling would weaken competition for “potential new entrants and for thousands of smaller businesses that rely on so-called multi-sided online business models,” CCIA said. CEO Ed Black said the lower court erred “in understanding how these business models function and ignored well-settled antitrust doctrines to come up with a ruling that would unfortunately expose these matchmakers to duplicative treble damages.” The solicitor general and the U.S. Chamber of Commerce also argued in favor of Apple. Because app developers can seek recovery of damages that have been passed on to consumers, allowing the consumers to sue would “create an evident prospect of duplicative recovery,” the solicitor general said. Online platforms lower overhead costs that simplify market entry, ACT|The App Association wrote. Platforms also give app developers instant access to international markets and strengthen intellectual property protections for developers, the association said.