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Apple Denies Having a Monopoly With App Store

 & Chloe Albanesius Executive Editor, News

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Apple this week hit back at the assertion that it is violating antitrust laws by only allowing iPhone users to download apps via its App Store.

As reported by Bloomberg, Apple lawyers argued that Cupertino does not set the prices for apps or in-app purchases, while charging a 30 percent fee for using its app platform does not violate antitrust laws, the lawyers said.

Opponents, however, argued that since iPhone users only have one option when it comes to purchasing apps for the smartphone, "then Apple is a monopolist."

California district Judge Yvonne Gonzalez Rogers has not yet issued a ruling on the topic, Bloomberg said.

The case dates back to 2011, when four iPhone owners filed an antitrust class-action suit that accused Apple of being monopolistic with its iPhone model. The suit took issue with the exclusive contract Apple initially had with AT&T for the iPhone, the $99 annual fee it charged developers for access to its SDK, and the inability to download apps from anywhere other than the App Store.

"Apple has unlawfully stifled competition, reduced output and consumer choice, and artifically increased prices in the aftermarkets for iPhone voice and data services and for iPhone software applications," according to the initial complaint.

The suit asked the court to stop Apple from selling iPhones that cannot download third-party apps, among other things. The suit also touches on cell phone unlocking, which has become a hot topic in recent months, as the Copyright Office recently made it illegal without carrier permission.

Apple tried unsuccessfully to have the case dismissed last year.

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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