CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Apple share price up 1% after setback in antitrust lawsuit

The tech company's stock is up despite a ruling against the company by the US Supreme Court.

Apple share price is up after the US Supreme Court ruled that iPhone users can proceed with their lawsuit against the tech corporation for allegedly monopolising its iTunes App Store. The Supreme Court said customers can sue the company for perceived monopolistic behavior.

Why are iPhone customers suing Apple?

The ruling against Apple stems from a lawsuit brought by a group of iPhone users in 2011. The class action suit alleged that they could only download apps from the App Store and not the original source on their phones. As a result, they contended that Apple engaged in anticompetitive behavior.

The plaintiffs in the lawsuit also claimed that there was an ‘Apple tax’ where the corporation charged other companies 30% above a typical fee to sell their apps on the App Store. Developers then increased the prices of their apps, and the higher prices were passed on to the consumers.

Why did the Supreme Court rule against Apple?

The Supreme Court ruled 5-4 that the customers can sue Apple for perceived monopolistic behavior. In a surprise decision, conservative Justice, Brett Kavanaugh, sided with the liberal judges in the ruling. Kavanaugh wrote in the majority opinion of the court that if ‘retailers engage in unlawful anticompetitive conduct that harms consumers. That’s why we have antitrust law.’

‘Ever since Congress overwhelmingly passed and President Benjamin Harrison signed the Sherman Act in 1890, "protecting consumers from monopoly prices" has been "the central concern of antitrust" ', added Kavanaugh.

Apple’s lawsuit will continue the conversation about antitrust law in the US. Spotify made an argument that Apple was engaging in antitrust behavior when it alleged the music streaming app was charged the 'Apple tax' when Spotify was on the App Store.

What’s next for Apple?

Apple released a statement denying the allegations of anticompetitive behavior.

‘Today’s decision means plaintiffs can proceed with their case in district court. We’re confident we will prevail when the facts are presented and that the App Store is not a monopoly by any metric,’ said Apple.

‘Developers set the price they want to charge for their app and Apple has no role in that. The vast majority of apps on the App Store are free and Apple gets nothing from them. The only instance where Apple shares in revenue is if the developer chooses to sell digital services through the App Store,’ added Apple.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.