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APPLE UNDER FIRE FOR APP STORE COMMISSION

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Apple has a habit of getting the heat from the consumers as well the authorities for some of its activities that are considered very annoying by numerous users and other businesses as well. It is again under the scanner for allegation that the app store charges a higher commission for the applications on the store.

Few of Apple consumers of the United States have been given thumbs up by the supreme court to sue Apple for extensive app prices. The consumers said that there is no alternative place to buy an iPhone app, but Apple takes a 30% commission on every sale, the reason they are being overcharged. They claim that this puts Apple in breach of anti-trust laws.  Apple clarified that it was an agent for app developers and that it neither owned nor sold the apps itself.

However, while app developers set their own prices, the company collects them “Leaving consumers at the mercy of monopolistic retailers, simply because upstream suppliers could also sue the retailers, would directly contradict the long-standing goal of effective private enforcement in anti-trust cases,” said, President Donald Trump’s controversial appointment, Brett Kavanaugh. Consumers alleged in a complaint originally filed in 2011 that Apple violated U.S. antitrust law by requiring iPhone apps to be sold at Apple’s App Store and forbidding third-party app developers from selling the software outside of it. Apple requires iPhone software developers to turn over 30 percent of what they charge for an app, increasing prices and excluding competitors from the iPhone “aftermarket” of apps, according to the suit.  “Apple’s analogy is unconvincing,” the court said. “In the case before us, third-party developers of iPhone apps do not have their own stores.”

The case presented above highlights the issue that probably several millions of Apple’s consumers face on a daily basis. The company’s policies to overcharge, offer less compatibility with other ecosystems, slowing their older products after the launch of their new products and so on have been the norm of the brand since a very long time. The only thing that masks these activities are their supreme user experience that the users are addicted to their products after a using their products. Moreover, the brand has spent a hefty amount in cleaning the dents from their name over the past several years.

-Samarth Joshi

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