Apple suffered a significant defeat at the Supreme Court on Monday, when the justices ruled that consumers could forge ahead with a lawsuit against the iPhone 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 device owners to download apps only from its portal while taking a cut of some sales made through the store.
The ruling could have serious repercussions for one of Apple’s most lucrative lines of business, and open the door for similar legal action targeting other tech giants in Silicon Valley.
At the heart of the case is Apple's handling of iPhone and iPad apps created by third-party developers and made available on its heavily curated App Store. Apple long has taken a commission on every paid app sold through this portal, rankling some developers that essentially see it as a tax.