Apple sued over "unfair" commission rate on iPhone apps
The company's monopoly of the iOS app market has come under fire again
Apple is being accused of breaching antitrust laws due to its App Store being the only place iOS users can buy apps, which the company takes 30% commission of every single sale, it has been revealed.
The tech giant has had a case presented to the US Supreme Court by iPhone owners, saying it's unfair that no one else can profit in the same way as Apple from app sales.
However Apple's argues that it's down to the individual app developer to sell their app and they keep ownership of their creations - Apple does not own them or sell them - it merely provides the platform for sale and collects payments.
Apple also dragged other companies, including Microsoft and Google into the drama, explaining they too take a large chunk of commission from app sales when sold through their official app stores. Both Google and Microsoft take a 30% cut on anything sold on their app platforms.
The court case is part of an older campaign presented to the courts back in 2011 that said Apple has breached antitrust law by holding a monopoly on iOS app sales. Although the case was dropped, it was re-kindled last year and Apple is now appealing against the claims.
"The Services category - which includes App Store commissions, alongside other media, content and services - is now Apple's second biggest driver of revenue after iPhone sales and has been its fastest growing source of revenues," Jack Kent, an analyst at IHS Markit, told the BBC.
"As many of Apple's device categories mature, services are vitally important as a means of driving incremental revenue after the device sale and also for tying users in to Apple's ecosystem of devices, apps and services."
Top 5 challenges of migrating applications to the cloud
Explore how VMware Cloud on AWS helps to address common cloud migration challengesDownload now
3 reasons why now is the time to rethink your network
Changing requirements call for new solutionsDownload now
All-flash buyer’s guide
Tips for evaluating Solid-State ArraysDownload now
Enabling enterprise machine and deep learning with intelligent storage
The power of AI can only be realised through efficient and performant delivery of dataDownload now