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The Supreme Court has Rejected Apple's Appeal in an Antitrust case that will affect Apple's lucrative App Store business

10.0z Patently Legal

It was great to hear some positive Apple news this morning about the iPhone being the top smartphone for 2023, beating out Samsung for the very first time. Hours later, Apple was hit with more bad news to start off the year beyond the Masimo case that could affect Apple Watch sales. The US Supreme Court has refused to consider Apple Inc.’s appeal in an antitrust suit challenging its lucrative App Store, a decision that will likely affect billions of dollars in revenue for the company, according to Bloomberg.

The decision lets stand a 2023 appeals court ruling that found Apple’s business model didn’t violate antitrust laws, but that it did violate California’s Unfair Competition Law by limiting the developers ability to communicate about alternate payment systems that may cost less. The decision applies nationally and the iPhone maker must start letting developers tell users about cheaper payment options.

The high court’s decision ends a temporary stay in the case and lets developers start directing iPhone users to cheaper purchasing options outside of Apple App Store via buttons or links to outside websites.

“As of today, developers can begin exercising their court-established right to tell US customers about better prices on the web,” Epic CEO Tim Sweeney said in a thread on the social media site X, formerly known as Twitter.

The Epic case was the first to challenge Apple’s lucrative App Store system, which rakes in billions of dollars each year. In the interim, the company has come under serious pressure around the world, including in Europe where competition enforcers have two antitrust cases pending against the tech giant. EU authorities are expected to fine the company later this year for allegedly using its App Store rules to thwart music-streaming rivals like Spotify Technologies SA.

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