Is Apple’s App Store Anticompetitive?
Will App Store be the next Apple (NASDAQ:AAPL) business targeted for antitrust lawsuits? A federal judge in California recently threw out a lawsuit brought against Apple over alleged antitrust behavior relating to its App Store policies, reports the Wall Street Journal.
Harry Bass, Edward Hayter, Robert Pepper, and Stephen Schwartz originally filed their lawsuit against Apple in 2011. According to their filed complaint via the Wall Street Journal, the plaintiffs allege that Apple “unlawfully discouraged iPhone customers from downloading competing applications software.” The plaintiffs also accuse Apple of encouraging higher app prices by taking a 30 percent cut of all apps sold through the App Store.
Apple discourages its customers from purchasing unauthorized third-party apps by voiding the iPhone warranties of users that hack their devices. In order to download apps from unauthorized third parties, users must typically hack their devices.