Moscow, may 13 — “Lead. Economy” the Supreme court has ruled against Apple, which is accused of monopolization of the market of applications for iPhone.
The U.S. Supreme court has allowed the App Store to file antitrust lawsuit against Apple, according to CNBC. A group of plaintiffs accusing kopeiskogo tech giant is abusing its position in the market of mobile software, when apps are distributed exclusively through its own store. Thus, users have to download software only from the App Store, which leads to unjustified price increases.
According to the materials of the case, users of iOS devices are required to use the App Store, which charges a 30% Commission from app developers. Developers, in turn, lay the 30% to the cost of the application, causing the client to pay the difference. Judge Brett Cavanaugh on Monday, supported by four judges-liberals, recommended denial of the application for the Apple on the termination of a claim for a 30 percent Commission.
After it became known about the decision of the Supreme court of the United States, Apple stock prices at Nasdaq fell by about 5%. Bloomberg, in turn, connects the fall of Apple shares not only with the decision of the court to move the suit, but also with the fact that China announced an increase in duties on certain U.S. products as from 1 June.
Apple has tried to ensure that the claim was not accepted. The Corporation insisted that the developers themselves set the price in the App Store, and Apple gets a Commission as an agent. The Corporation also argued that there can not be a Respondent in this case because the plaintiffs are clients of the app developer, not Apple.
“The borders that is trying to install Apple, do not carry meaning, moreover, in order fraudulently to save the company from this and other similar lawsuits,” said the Supreme court judge Brett Cavanaugh. “We do not agree. The plaintiffs bought the app directly from Apple, which means that they are customers of the company,” added the judge.
It is worth noting that while this case is in its early stages, and therefore still not been established for certain, whether Apple violated Federal antitrust law. However, the court’s decision could set a precedent, which would mark the beginning of the war between Apple and offended users, who have leverage on the company.
The plaintiffs will be able to demand billions of dollars in compensation for the damages if they win the lawsuit. According to Apple, the Supreme court ruling, allowing the case to continue, will pose a threat to e-Commerce is a rapidly growing segment of the U.S. economy, estimated in hundreds of billions of dollars a year.
The Supreme court’s decision is not in favor of Apple may constitute a danger to other players of Silicon valley. So, lately all the louder calls to share Facebook, which owns the eponymous social network, photo sharing site Instagram and WhatsApp messenger.
The Creator of the world wide web Tim Berners-Lee in an interview with Reuters said that the tech giants of Silicon valley have become so dominant that they may have to share if competitors or the changing tastes of users will not reduce their influence.
The digital revolution has given rise to several US-based technology companies, which now collectively have greater financial and cultural power than most States.
“Ultimately, you get one company that dominates in this area, so another option besides collapse, no,” said 63-year-old Tim Berners-Lee, the UK scientist who invented the web in 1989, “There is a danger of concentration,” he said.
At the same time, he noted that the speed of technology and changing tastes of users can be brought down to earth some of the largest technological corporations.
The Senator from Massachusetts Elizabeth Warren gathered to run for the U.S. presidency in 2020, intends to lobby for the adoption of a law that will push Apple to change the current business model. In particular, the main claim a Warren for the App Store. In her opinion, the company has the right to engage in maintenance of the corporate application store, and at the same time to place ON their own development, because it thereby violates the rights of third-party developers.
“If you run the distribution platform, accessible by third-party developers, you have no right to place their programs, because in this case you have two undeniable advantages. First, you get information about how third party sellers conduct their trade, and can use it. And, secondly, there is a high probability that consumers will prefer your product as the owner of the platform,” says Warren.
Elizabeth Warren has also proposed to introduce anti-monopoly legislation the concept of “platforms for General use”. This will include companies with annual revenue of over $25 billion offering for General use on the Internet marketplaces, or exchanges of a platform for communication between the parties — thus, the definition of get and Amazon, and Facebook, and Google.
The Senator gave an example when in 90-ies in the technology market of the USA was dominated by company Mircosoft. A range of Antimonopoly measures taken by the government, helped to gain a foothold in the market of new companies, such as Google and Facebook. She noted that now these companies got too large market share, which provides them with full control over this sector of the economy.
“Almost half of all e-Commerce goes through Amazon. More than 70% of all Internet traffic passes through sites that are owned by Google or Facebook. These companies use their own resources to suppress small business and also for the substitution of the interests of the American people of their financial interests,” added the Senator.
It is necessary to prevent technological mergers, which the Senator considers anti-competitive. The politician claims that these mergers and acquisitions caused damage to the competition.
If such a law is adopted, for example, the Amazon Basics brand need to be detached from the Amazon Marketplace, and Google’s advertising network from search engines. In addition, Warren proposes to repeal many anti-competitive mergers of technology companies, including the acquisition of WhatsApp and Instagram company Facebook, Waze, Nest and DoubleClick — Google, Whole Foods and Zappos by Amazon.
Elizabeth Warren believes that such reforms will not impact globally on Internet: the small business will have a chance to compete with Google, Facebook or Amazon, all of which will also provide services to users.
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