Supreme Court rules against Apple, allowing lawsuit targeting App Store to proceed

Apple suffered a significant defeat at the Supreme Court, when the justices ruled that consumers could forge ahead with a lawsuit against the tech giant over the way it manages its App Store. The 5-4 decision allows device owners to proceed with a case that alleges Apple has acted as a monopoly by requiring iPhone and iPad users to download apps only from its portal while taking a cut of some sales made through the store. The legal question in the case was whether the suit was barred by a 1977 decision, Illinois Brick Co. v. Illinois, which allowed only direct purchasers of products to bring federal antitrust suits. Apple argued that it was an intermediary and so not subject to suit. The court’s opinion — led by conservative Justice Brett M. Kavanaugh, who joined its liberal justices in the majority — did not rule on the merits of the lawsuit itself. But, the ruling could have serious repercussions for one of Apple’s most lucrative lines of business, while opening the door for similar legal action targeting other tech giants in Silicon Valley.