Supreme Court judgment on Apple App Store fees is not expected until mid-2019

Benjamin Schachter of Macquarie Research expects the judgment of the Supreme Court on a long-term suit above the developer prices in the App Store will soon be heard, but the verdict will only expire in 2019 and any financial consequences are at least a year away.

While the world is focusing its eyes on the Washington hearings of the proposed US Supreme Court candidate, Brett Kavanaugh, an analyst is looking forward to one of the cases that the Court will deal with this fall.

The report written by Schachter notes that the US Supreme Court will hear arguments in it Apple v. Pepper, a case about the anti-trust implications of Apple's App Store costs as early as the last week of November. However, the analyst notes that the arguments can be pushed back to the beginning of 2019.

"In the scenario that Pepper wins (if the court decides that consumers are" direct buyers "with grounds to prosecute), the case will continue in the lower courts," the note said. "If Apple wins, it is likely that a similar lawsuit will be filed on behalf of developers, not for consumers, and we believe that in any case this case will call for more attention to the issue of the App Store's economy for investors, although the Decision The Supreme Court has no direct influence on the model. "

The note says the case might damage Apple's performance if the decision leads to lower rates, although that is a few steps away. Macquarie has not adjusted the price target for Apple in the note, so it stays at $ 235.

A decision is likely to arrive in the spring or summer of 2019.

The Pepper case was first filed in 2011. The case involves a group of app developers who believe Apple's App Store reimbursement regime violates antitrust laws. The prosecutors claim that Apple is engaged in anti-competitive behavior when taking a cut in the sales revenue of developers. The question also arises of whether companies such as Apple can be prosecuted via App Stores under antitrust legislation, with the plaintiffs possibly being paid triple compensation for the behavior. Google, which has its own version of the App Store, would also be affected by a statement.

In May, The Department of Justice filed a brief visit to Apple in the Pepper case. Apple appealed to the Supreme Court after the Ninth Circuit Court of Appeals had chosen the prosecutors and the court agreed to the case in June during the next term.

© Appleinsider

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