What could the Supreme Court ruling on Apple’s App Store mean for businesses? 

The Supreme Court in the US is set to hear a case brought against Apple that could affect App Store developers. It’s a landmark case that focuses on the consumers of the App Store but, should the court rule in favour of consumer protection against monopolies it will have implications for developers and businesses too.

What is the Supreme Court case about?

The case – Apple Inc v Pepper – focuses on whether Apple has created a monopoly in the way the App Store operates. iOS apps can currently only be sold through Apple’s own App Store, meaning consumers must use it if they own an iPhone or iPad. Apple, which charges app developers a 30% commission fee and is estimated to have made over $10 billion in 2017 from these fees alone, is now facing the case due to claims this has led to consumers having to pay inflated prices.

Apple is fighting the case and has won the support of the Trump administration but there is a chance that the Supreme Court could rule in favour of consumers under antitrust laws.

What would a ruling against Apple mean?

For app developers and businesses, a ruling against Apple could mean more freedom to develop and distribute iOS apps, as those bringing the case against Apple argue that the tech giant has monopolised the distribution of apps. It’s unclear which way the Supreme Court will rule but the Apple Inc v Pepper case is already unusual.

From an app developer perspective, a ruling in favour of the plaintiffs could be beneficial. If Apple were required to allow iOS apps to be sold through different channels, businesses could avoid the commission fees associated with selling in the App Store and reduce costs to the end user. The fees charged by Apple have often been a contentious issue with developers, many of whom say they are too high. Depending on the ruling of the Supreme Court case, Apple could decide to lower its fees in a bid to remain competitive as rivals emerge.

It also gives developers a chance to make their apps accessible through a wider range of channels to all consumers, for example, having a single access point for all devices and allowing customers to select the version they want to download. There’s also the potential for developers to avoid Apple’s approval process, opening up more possibilities.