Apple Asks Judge To Dismiss iPhone Monopoly Lawsuit

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Apple has asked a federal judge to dismiss a consumer lawsuit that alleges the Cupertino company maintains a monopoly on iPhone apps because it does not allow them to be purchased elsewhere, Bloomberg reports. Attorneys who filed the suit back in 2011 also ague that Apple’s 30% cut of developer revenue is increasing the prices of iOS apps.

At a hearing in Oakland, California, on Tuesday, Apple attorney Dan Law argued that the company doesn’t set the price of paid iOS apps, and that charging a price for distribution — in this case 30% — on a new and unique platform does not violate antitrust laws.

“There’s nothing illegal about creating a system that is closed in a sense,” Wall told U.S. District Judge Yvonne Gonzalez Rogers.

But Alexander Schmidt, an attorney representing the seven customers who are suing Apple, asked whether an iPhone customer could purchase Rovio’s Angry Birds game from somewhere else. “If the answer is no, then Apple is a monopolist,” he added.

Rogers did not rule on the matter, according to Bloomberg.

Rogers is also overseeing another antitrust lawsuit against Apple, which alleges the company maintains a music-downloading monopoly with its iTunes Store. Apple is also facing another antitrust lawsuit in New York over accusations it teamed up with book publishers and conspired to fix the price of digital eBooks.

Source: Bloomberg