US States Say Apple Stifles Competition Through Its Mobile App Store
On Thursday, Attorneys general for 34 US states and the District of Columbia argued that tech giant Apple is stifling competition through its mobile app store. The US states made the claim as they appealed against a ruling that let Apple continue some of its allegedly restrictive practices.
Thursday’s claim came in a lawsuit against app store fees and payment tools between the tech giant and game maker Epic Games. The US states, led by Utah and including Texas, Indiana, and Colorado, argued that “Apple’s conduct has harmed and is harming mobile app-developers and millions of citizens.”
“Meanwhile, Apple continues to monopolize app distribution and in-app payment solutions for iPhones, stifle competition, and amass supracompetitive profits within the almost trillion-dollar-a-year smartphone industry,” the states said.
The Utah-led action follows a US district judge in California ruling mostly against Epic Games last year. The judge found that antitrust law was not violated by the 15% to 30% commissions which Apple charges some app makers for the use of an in-app payment system.
Epic Games challenged the ruling in the 9th US Circuit Court of Appeals. The 34 US states, as well as activist groups and academics, delivered supporting legal arguments through court filings.
“Paradoxically, firms with enough market power to unilaterally impose contracts would be protected from antitrust scrutiny — precisely the firms whose activities give the most cause for antitrust concern,” said the US states.
On Thursday, Apple commented that it was confident that Epic Games’ challenge would fail.
