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Apple faces risks from the Supreme Court antitrust suit

AAPL ) shares slipping news on hardware issues as supplier reductions and threatening additional charges on Chinese products, profitability of…

AAPL ) shares slipping news on hardware issues as supplier reductions and threatening additional charges on Chinese products, profitability of the company’s multi-billion dollar department can strengthen a more existential threat due to the outcome of a forthcoming decision by the Supreme Court. “data-reactid =” 22 “> As Apple shares (AAPL) glide on news about hardware issues as supplier reductions and threats to applied US rates on Chinese products, the profitability of the company’s multi-billion dollar service department could pose a more existential threat due to the outcome of a forthcoming decision from Supreme Court.

<p class = “canvas-text-text” Mb (1

.0em) Mb 0) – sm Mt (0.8em) – sm “type =” text “content =” Apple’s lucrative App Store, part of his service arm as g earned $ 37.2 billion & nbsp; during the fiscal year 2018, is subject to an antitrust class measure, which, if allowed to continue, threatens profit for the division, which is increasingly being invoked to counteract a weak demand for mobile phones. “data-reactid =” 23 “> Apple’s lucrative App Store, part of its service arm that generated $ 37.2 billion in fiscal year 2018, is subject to an antitrust class threatening profit for the division that is increasingly being invoked to counteract a weak demand for mobile phones.

<p class = “canvas-atom canvas text Mb (1.0em) Mb (0)) – sm Mt (0.8em) – sm “type =” text “content =” In question, a group of iPhone consumers say that App Store revenue is at least partially the bad profits of an illegal monopoly. Consumers claim that App Store checks retail prices by charging developers a 30% commission is forwarded to app buyers who have no alternative market to purchase iPhone apps. “data-reactid =” 24 “> That problem is a group of iPhone consumers who say that App Store revenue is at least partially the bad profits of an illegal monopoly. Consumers argue that the App Store controls retail prices through to take out developers a 30% commission is forwarded to app buyers who have no alternative market to buy iPhone apps.

A loss that could cost Apple billion

<p class = “canvas atom canvas text Mb (1.0em) Mb (0) – -sm Mt (0.8em) – sm “type =” text “content =” If the Supreme Court allows the case to go on and Apple loses the trial, it may be a punishment . [n / a] App Store The sale is estimated to be approximately 37% of the company’s estimated total $ 46 billion annual service revenue in the 2019 fiscal year, according to an analyst from November 26 from Bank of America Merrill Lynch. In a scenario where App Store commissions only drop 5% from current 30%, analysts predict a 17% decrease in App Store revenue, or a loss of $ 2.8 billion. “Data Reaction =” 26 “> If the Supreme Court allows the case to go on and Apple loses the trial, it may be a punishment. App Store sales are estimated to represent approximately 37% of the company’s estimated total annual service revenue of $ 46 billion in fiscal year 2019, according to an analyst from November 26, Merrill Lynch, November 26. According to a scenario where App Store commissions drop by only 5% from the current 30% rate, analysts predict a 17% decrease in App Large revenue, or a loss of $ 2.8 billion.

<p class = “canvas-atom kanvastext Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm” type = “text” content = ” Whether the app store is or is not an illegal monopoly, rights are placed on a more preliminary question: If iPhone users are right or” sta “

In 1977, the Illinois High Court of Illinois decided to direct only buyer or those who suffer from immediate damage from alleged monopolistic behavior may result in a claim for damages under anti-competitive laws “data-reaction =” 27 “> Whether the app store is or is not an illegal monopoly, the courts face a more preliminary question : If iPhone users are right or “standing,” For the first time, prosecute the anti-trust claim against Apple.

In 1977, the Supreme Court of Illinois Brick v. Illinois decided that only direct buyers or those who suffer immediate damage from alleged monopolistic behavior may claim damages under anti-competitive laws.

<p class = “canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm” type = “text” content = ” Apple and app developer argues App Big buyers are indirect buyers without the right to sue, but if the supreme court allows the claim to go on, Apple must defend its service in a new antitrust landscape. “data-reactid =” 28 “> Apple and app developer argue App Big buyers are indirect buyers without the right to sue, but if the Supreme Court allows the claim to go forward, Apple must defend its office in a new antitrust landscape.

Key issue The Supreme Court must determine

<p class = “canvas-atom canvas -text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm” type = “text” content = ” The Supreme Court’s main question is whether Apple sets or controls the selling price, according to George Hay, a lawyer at Cornell Law School and a leading authority in antitrust law. ” data-reaction = “30”> ] The Supreme Court’s main issue is whether Apple sets or controls retail prices, according to George Hay, a lawyer at Cornell Law School and a leading anti-trust team.

<p class = “canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm” type = “text” content = “” Antitrust places no restrictions on one company’s only opportunity to load anything, says Hay. “Of course, a commission runs the price.” “data-reactid =” 31 “> ” Antitrust puts no restrictions on a company’s sole ability to load anything, “said Hay.” Off the course a commission runs the price up. “

<p class =” canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm “type =” text “content =” For its part, iPhone claims Consumers that Apple is talking about the fact that its price categories that require prices to end for example in 99 percent increments correspond to the control of retail prices. & Nbsp; “Much of it smells that Apple not only charges the developer a commission that they can do, but in some way controls the retail process and selling price,” says Hay. “data-reactid =” 32 “> Its part, iPhone consumers claim that Apple talks that its price categories that require prices to end for example in 99 percent increments correspond to the control of retail prices. “Very smelly, Appl is not just charging the developer a commission that they can do, but in some way controls the retail process and retail price,” says Hay.

<p class = “canvas-atom canvas text Mb em) Mb (0) – sm Mt (0.8em) – sm “type =” text “content =” Interestingly, the app industry – which is being charged 30% commission – appears on Apple’s side. & Nbsp App Association, representing more than 5,000 Apple and Android apps, filed an amicus card in support of Apple and its president, Morgan Reed, claiming that Apple does not actually control the price of apps . He noted as evidence of this lack of control that Apple allows developers to offer free apps in the store. “data-reactid =” 33 “> Interestingly, the app industry – which is burdened by the 30% commission – seems to come out on the Apple Page. App Association, representing more than 5000 Apple and Android apps, sent an amicus card to Apple, and its president, Morgan Reed, claims that Apple does not actually control the price of apps. He noted as evidence of this lack of control that Apple allows developers to offer free apps in the store.

<p class = “canvas-atom canvas text Mb (1.0em) Mb 0) – sm Mt (0.8em) – sm” type = “text” content = “Additionally, n early all app developers represent the App Association selling on both platforms, Reed said. Despite the fact that the App Store, according to t studied by SensorTower App Store has almost doubled revenue for its closest competitor, Google Play, Reed contends, & nbsp; “There is no dominant monopolist in the handset or in the tablet room.” “data-reactid =” 34 “> Furthermore, n early all app developers represent the App Association selling on both platforms, Reed said. that the App Store, according to t has studied SensorTower App Store has attracted almost double revenue from its nearest competitor, Google Play, Reed contends “There is no dominant monopolist in the handset or in the tablet room . “

<p class =” canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm “type =” text “content =” “It is very easy to talk about a high-profile company like Apple, to see it as a big company and therefore dictate terms, Reed emphasizes that developers are a powerful community that numbers hundreds of thousands who can take action against Apple if it decides the Commission to “rent is just too damn high. “Apple customers say they’re more likely to pay for applications than Android users. ” data-reactid = “35”> “It’s very easy to talk about a high-profile company like Apple, to see it as a big company and therefore dictates terms, Reed says, and stresses that developers are a powerful community that numbers hundreds of thousands who can take action against Apple if it decides the Commission “rent is just too damn high.” Apple Customers say they are more likely to pay for applications than Android users.

<p class = “canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm” type = “text” content = ” Reed says developers accept Benefits in exchange for commissions charged by Apple and Google Play, such as reduced costs of appeal, trial, copyright and intellectual property protection for homework, a platform that users trust to secure data and credit card processing. They play a role as convener, says Reed, which promotes efficiency and cost savings for developers and consumers. “data-reactid =” 36 “> Reed says developers receive commodity benefits charged by Apple and Google Play, such as reduced costs for appeal, trial, copyright and intellectual property protection, a platform that users trust to secure data and credit card processing. They play a role as “convener”, says Reed, which promotes efficiency and cost savings for developers and consumers.

Reed said that the advent of app-based software drove down the average price paid for software from about $ 50 for boxed software to around $ 3. He says that development costs would be increased if they were required to build solutions and market plans for dozens of app stores “data-responseid =” 41 “> Reed said the application-based software was running down. The average price paid for software from about $ 50 for boxed software was about $ 3. He says that development costs would be increased if they would build solutions and marketing plans for dozens of app stores.

<p class = “canvas atomic text text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm” type = “text” content = “” If the result was a resolution of App Store catastrophic for developers, Sade Reed. “Now you would be like a developer like an island on the internet.” “data-reactid =” 42 “> ” If the result was a resolution of the App Store catastrophic for developers, “Reed said.” Now you would be like a developer like an island on the internet. “

Now that the case has been claimed in the Supreme Court, the courts can make a decision at any time between now and the end of their mandate this summer. If the Supreme Court allows the case to continue as a class action, it may be years before a final judgment will come down. However, Apple may be on the hook for three consumer damage on

<p class = “canvas-atom canvastxt Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm” type = “text” content = “[19659033] Alexis Keenan is a New York-based reporter for Yahoo Finance. She has previously produced live news for CNN and is a former prosecutor. & nbsp; Follow her on Twitter at & nbsp; @alexiskweed
“data-reactionid =” 44 “> [19659033] Alexis Keenan is a New York-based reporter for Yahoo Finance. She has previously produced life news for CNN and is a former prosecutor. [19659035] Follow her on Twitter at @alexiskweed

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