6. Critics target iPhone App Store
Apple’s very successful iPhone App Store is under attack from multiple directions in the U.S. and Europe, Axios' David McCabe writes.
- Some customers and developers take issue with the portion of some for-profit App Store transactions that Apple takes for itself.
- App creators also have no choice but to use Apple's store to get to its customers — unlike on Google's Android.
Driving the news: The Supreme Court ruled 5-4 yesterday that users can sue Apple for allegedly exercising monopoly power over the market for third-party apps and driving up prices.
- What's next: The Supreme Court didn’t rule on the actual monopoly question.
- "That matter is left for a lower federal district court to determine, a process that could take years and result in Apple paying monetary damages, and making changes to its business practices, if it loses," per the WashPost.
- An Apple spokesperson said: "We’re confident we will prevail when the facts are presented and that the App Store is not a monopoly by any metric."
The bigger picture: Apple is rolling out its own services, like Apple News+ and its forthcoming streaming offering, that will compete with third-party apps.