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Photo: Lynne Cameron - PA Images/Getty Images

An antitrust lawsuit against Apple and growing calls to break up Facebook tee up what's likely to be a lengthy, contentious debate over the boundaries of technology markets.

Why it matters: As calls mount to break up big tech companies or limit their power, their legal fate will hang on how judges and regulators define their markets.

Driving the news: The U.S. Supreme Court ruled Monday that a class action suit by users charging Apple's App Store with monopolistic behavior could move forward.

The big picture: Here's why "market definitions" are so central to antitrust fights.

  • Say you run the only restaurant in town — do you have a monopoly?
  • If the market is defined as "restaurants" or "dining out," then you do.
  • If the market is defined as "meals" or "food," well, people can buy groceries and cook, right?
  • One way, you're a monopolist — the other, you aren't.

In the App Store suit, users charge that Apple, by forcing developers to sell iPhone apps only through Apple's storefront and taking a cut of those sales, drives up prices.

  • Apple has argued that, among other things, users can access software and services via the web browsers on their phones, and that the majority of apps accessed from the App Store are free downloads that don't earn it a penny.

If you define the market as "iPhone apps," Apple looks a whole lot like a monopolist — it maintains complete control over the space.

  • You can't put a non-App Store app on an iPhone without "jail-breaking" it, tampering with the operating system in a way that violates Apple's terms and voids the warranty.

If instead you define the market as, say, "smartphone apps," you get a different outcome.

  • That's because users are free to buy Android phones and access a very different universe of apps. Users have choice — presto, no monopoly.

The same principles apply in the debate over breaking up Facebook.

  • In his recent essay arguing that Facebook has become too powerful, co-founder Chris Hughes argued that the company "is a powerful monopoly, eclipsing all of its rivals and erasing competition from the social networking category."
  • "The social networking category" is a way to define this market that most readily casts Facebook as a monopoly.
  • But if you call it "messaging," then Apple, Snapchat, and the cellphone providers all look like hearty competitors.

Similarly, in many countries, Google looks to have a monopoly in the search market. But if you define the market instead as "online information," the case is a lot murkier.

  • Google's Android practices have also come under antitrust scrutiny. Last year an EU ruling that penalized Google for practices involving the Android Play Store declared that Google had a monopoly in that market.

Our thought bubble: In tech, market definitions are unusually fluid because hardware evolves quickly and software is infinitely malleable.

  • Lawsuits and antitrust cases move slowly, and in the time they can be tried, the markets tend to have mutated.
  • But the tech giants' power has grown so vast that many critics see antitrust remedies as the only way to rebalance the industry's game.

Go deeper

Cuomo asks New York AG and chief judge to choose "independent" investigator into sexual harassment claims

New York Governor Andrew Cuomo at a press conference on Feb. 24. Photo: Seth Wenig/pool/AFP via Getty Images

A special counselor to New York Gov. Andrew Cuomo released a statement on Sunday asking the state's attorney general and chief judge to jointly pick an "independent and qualified lawyer in private practice without political affiliation" to investigate claims of sexual harassment against the governor.

The state of play: The statement is an about-face from Cuomo, who had previously selected a former judge close to a top aide to lead the investigation, the New York Times reported, a move that was widely criticized.

Republican Sen. Sasse slams Nebraska GOP for "weird worship" of Trump after state party rebuke

Sen. Ben Sasse, (R-Neb.) Photo: Andrew Harnik - Pool/Getty Images

The Nebraska Republican Party on Saturday formally "rebuked" Sen. Ben Sasse (R-Neb.) for his vote to impeach former President Trump earlier this year, though it stopped short of a formal censure, CNN reports.

Why it matters: Sasse is the latest among a slate of Republicans who have faced some sort of punishment from their state party apparatus after voting to impeach the former president. The senator responded statement Saturday, per the Omaha World-Herald, saying "most Nebraskans don't think politics should be about the weird worship of one dude."

Cuomo barraged by fellow Dems after second harassment accusation

New York Gov. Andrew Cuomo faced a barrage of criticism from fellow Democrats after The New York Times reported that the second former aide in four days had accused him of sexual harassment.

Why it matters: Cuomo had faced a revolt from legislators for his handling of nursing-home deaths from COVID. Now, the scandal is acutely personal, with obviously grave political risk.