Legal win for Apple as court rejects claims of iPhone price manipulation

WEB DESK: In a significant legal victory for Apple, a US District Court has dismissed a class action lawsuit challenging the tech giant’s app ecosystem practices.

The lawsuit, which accused Apple of maintaining a “closed ecosystem” that inflates iPhone prices, was dismissed by Judge Richard Seeborg, who ruled that the plaintiffs “lack antitrust standing for all their claims.”

The proposed class action claimed Apple engaged in anticompetitive behaviour through agreements with browser providers, effectively preventing third-party apps from entering the market. This legal action followed Apple’s decision in January to allow third-party browser engines on iPhones within the European Union.

Central to the lawsuit was the allegation that Apple’s use of WebKit on iOS restricted the functionality of web apps.

This restriction purportedly discourages the development of progressive web apps (PWAs) and ensures that alternative browsers, such as Google Chrome and Mozilla Firefox, function merely as variations of Safari rather than independent browsers.

The plaintiffs argued that this practice leads to higher prices for iPhone users.

In response to the allegations, Apple maintained that its prices are competitive, reflecting the intense competition it faces in the market. “Apple’s prices are not artificially inflated; they are competitive in light of the fierce competition Apple faces from its competitors,” the company stated last month.

Judge Seeborg agreed with Apple’s position, granting the motion to dismiss the lawsuit. However, the plaintiffs have been given thirty days to file an amended complaint.

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