Apple blocks class-action status in user app store fee suit

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Apple Inc. blocked an antitrust lawsuit over App Store charges filed by a handful of iPhone customers from being expanded to incorporate tens of millions of shoppers throughout the US.

A federal choose in Oakland, California, on Tuesday refused to let the case proceed on behalf of customers who maintain nearly 400 million US Apple accounts and have bought apps and digital items from the App Store.

The choose allowed the plaintiffs to revise and refile their request. But if her ruling stands, it is going to eviscerate a decade-old case that might probably expose the iPhone maker to billions of {dollars} in damages.

Plaintiffs “totally anticipate” the choose to grant class certification in the longer term, stated Mark Rifkin, a lawyer representing the shoppers. “While we’re disillusioned that the court docket has not but granted class certification, the court docket has given us a transparent roadmap to observe once we renew the movement.”

Class-action status would give shoppers appreciable settlement leverage in their problem to the profitable App Store enterprise, which analysts say brings in greater than US$20bil (RM84.19bil) a 12 months with a revenue margin above 75%.

Potential damages for the category would run from US$7-10bil (RM29.47-42.09bil), attorneys for the shoppers stated at a listening to in November.

Apple can also be combating Epic Games Inc. over App Store charges and going through scrutiny from international regulators inspecting the tech big’s energy as a gatekeeper to the digital economic system.

The client case is In re Apple iPhone Antitrust Litigation, 11-cv-06714, U.S. District Court, Northern District of California (Oakland). – Bloomberg



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