Court Rules Apple Can Be Sued for Monopolizing iPhone App Market

appstoreA U.S. Appeals Court today ruled that App Store customers can move forward with a lawsuit claiming Apple created an illegal app monopoly because it did not allow users to purchase iPhone apps outside of the App Store, reports Reuters.

The decision reverses a 2013 ruling that dismissed the lawsuit, originally filed in 2012. The case, Pepper et al v. Apple Inc., alleges that by not letting users purchase apps from third-party sources, there was no price competition, leading to higher app prices.

When the lawsuit was originally filed, Apple requested that it be dismissed because developers, not Apple, set prices for App Store apps. Apple simply provides the platform developers use to sell apps to customers.

According to today's ruling, because iPhone users purchase the apps directly from Apple, they have the right to file a lawsuit against the company.

An attorney for the plaintiffs in the case told Reuters that the aim of the lawsuit is to allow people to shop for iPhone apps wherever they want, an outcome that's unlikely due to security implications.

But if the challenge ultimately succeeds, "the obvious solution is to compel Apple to let people shop for applications wherever they want, which would open the market and help lower prices," Mark C. Rifkin, an attorney with Wolf Haldenstein Adler Freeman & Herz representing the group of iPhone users, told Reuters in an interview. "The other alternative is for Apple to pay people damages for the higher than competitive prices they've had to pay historically because Apple has utilized its monopoly."

The Appeals Court ruling does not address the specific monopoly allegations levied at Apple and pertains only to whether or not Apple can be sued for this issue.

Popular Stories

Apple Logo Zoomed

Tim Cook Teases Plans for Apple's Upcoming 50th Anniversary

Thursday February 5, 2026 12:54 pm PST by
Apple turns 50 this year, and its CEO Tim Cook has promised to celebrate the milestone. The big day falls on April 1, 2026. "I've been unusually reflective lately about Apple because we have been working on what do we do to mark this moment," Cook told employees today, according to Bloomberg's Mark Gurman. "When you really stop and pause and think about the last 50 years, it makes your heart ...
wwdc sans text feature

Apple Rumored to Announce New Product on February 19

Thursday February 5, 2026 12:22 pm PST by
Apple plans to announce the iPhone 17e on Thursday, February 19, according to Macwelt, the German equivalent of Macworld. The report, citing industry sources, is available in English on Macworld. Apple announced the iPhone 16e on Wednesday, February 19 last year, so the iPhone 17e would be unveiled exactly one year later if this rumor is accurate. It is quite uncommon for Apple to unveil...
Finder Siri Feature

Why Apple's iOS 26.4 Siri Upgrade Will Be Bigger Than Originally Promised

Friday February 6, 2026 3:06 pm PST by
In the iOS 26.4 update that's coming this spring, Apple will introduce a new version of Siri that's going to overhaul how we interact with the personal assistant and what it's able to do. The iOS 26.4 version of Siri won't work like ChatGPT or Claude, but it will rely on large language models (LLMs) and has been updated from the ground up. Upgraded Architecture The next-generation...
iOS 26

iOS 26.3 and iOS 26.4 Will Add These New Features to Your iPhone

Tuesday February 3, 2026 7:47 am PST by
While the iOS 26.3 Release Candidate is now available ahead of a public release, the first iOS 26.4 beta is likely still at least a week away. Following beta testing, iOS 26.4 will likely be released to the general public in March or April. Below, we have recapped known or rumored iOS 26.3 and iOS 26.4 features so far. iOS 26.3 iPhone to Android Transfer Tool iOS 26.3 makes it easier...
iphone 17 pro dark blue 1

iPhone 18 Pro Max Rumored to Deliver Next-Level Battery Life

Friday February 6, 2026 5:14 am PST by
The iPhone 18 Pro Max will feature a bigger battery for continued best-in-class battery life, according to a known Weibo leaker. Citing supply chain information, the Weibo user known as "Digital Chat Station" said that the iPhone 18 Pro Max will have a battery capacity of 5,100 to 5,200 mAh. Combined with the efficiency improvements of the A20 Pro chip, made with TSMC's 2nm process, the...

Top Rated Comments

LordVic Avatar
118 months ago
Abuah?!

what?

listen, i'm all against monopolistic competitive practices.
I'm all for releasing some stranglehold on economies that filthy rich have. i'm all for competition for luxury items.

but There's no monopoly here. If you don't like Apple's app store policy, There's a giant swath of Android manufacturers out there offering competitions, many come with their own App stores. If you're looking for an open and free market, that exists.

But where then does this "monopoly" end? What about OS? Apple has 100% of iOS installations on iPhones. is that not a monopoly preventing me choice of what OS I want? (although, I would love to buy an iPhone running android :p)


this is a slippery slope. Sometimes, yes, Lawsuits are required to keep a company in check, but sometimes, these things are more dangerous to the market than helpful
Score: 109 Votes (Like | Disagree)
tmjdisorder Avatar
118 months ago
In other news McDonald's is being sued for being the only place you can buy a Big Mac
Score: 90 Votes (Like | Disagree)
and 1989 others Avatar
118 months ago
They created the iPhone, they created the App Store, they created the developer system. App developers agree to the terms and condition. The apps are approved for use with the iOS.

They own the entire ecosystem.

How in the hell so you sue somebody for something they developed and own 100%?

This will be an ongoing case which will cost millions and the outcome will be in favour of Apple, because of the above.
Score: 54 Votes (Like | Disagree)
craig1410 Avatar
118 months ago
Fantastic, just what the App Store needs - lower prices :rolleyes:

What an idiotic law suit. Developers receive 70%-85% of the revenue passing through the store and they control the pricing so how on earth can this be deemed a monopoly...
Score: 38 Votes (Like | Disagree)
jimbobb24 Avatar
118 months ago
This is stupid straight up. I hope next they can rule that I can set up a shop inside of Walmart or maybe I want to sell some sculptures inside Tiffany's.

What a mess.
Score: 36 Votes (Like | Disagree)
mr.steevo Avatar
118 months ago
I thought the purpose of selling within the App Store was to protect iOS users from malicious software.

At least that was the official reason...
Score: 27 Votes (Like | Disagree)