Judge certifies Apple app store class action

Published Sat, Feb 3, 2024 · 07:30 AM

A federal judge on Friday (Feb 2) said tens of millions of Apple customers can pursue a class action accusing the company of monopolising the market for iPhone apps by banning purchases outside its App Store, leading to higher prices.

US District Judge Yvonne Gonzalez Rogers had in March 2022 refused to certify a class action, but changed her mind after the class was narrowed to include only Apple account holders who spent US$10 or more on app or in-app content.

While remaining “concerned” that the narrowed class might include more than 10 million accounts that suffered no harm, or 7.9 per cent of the total, Rogers said that number could be reduced and there was no fixed “cut-off” for denying certification.

The Oakland, California-based judge also rejected Apple’s bid to exclude testimony it considered unreliable from two expert witnesses, including Nobel Prize-winning economist Daniel McFadden, about how it may have harmed consumers.

Apple, based in Cupertino, California, did not immediately respond to requests for comment.

Mark Rifkin, a lawyer for the consumers, said he was “extremely pleased” and looked forward to the next phase of the 12-year-old antitrust case. He estimated that the class incurred “billions of dollars in damages.”

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

Class actions can result in greater recoveries at less cost than if plaintiffs are forced to sue individually.

Rogers has also overseen Fortnite video-game creator Epic Games’ anti-trust case against Apple.

In September 2021, she ordered Apple to loosen restrictions on where developers can seek payment from customers for their apps, but stopped short of requiring Apple to allow downloads to iPhones outside its App Store.

A federal appeals court upheld much of that ruling in April 2023, and the US Supreme Court refused to get involved last month. REUTERS

KEYWORDS IN THIS ARTICLE

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Companies & Markets

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here