Millions of Apple users granted permission by US judge to proceed with App Store lawsuit.
(Reuters) – Tens of millions of Apple customers can file a class-action lawsuit accusing the company of monopolizing the iPhone app market by banning purchases outside the App Store, driving up prices, a federal judge said on Friday.
U.S. District Judge Yvonne Gonzalez Rogers had in March 2022 refused to accept the class action, but changed her mind after the class was limited to Apple account holders who spent $10 or more on the app or in-app content.
While Rogers remained “concerned” that the narrowed class might include more than 10 million accounts that did not suffer damage, or 7.9% of the total, Rogers said the number could be reduced and there was no fixed “limit” for decertification.
The Oakland, Calif.-based judge also rejected Apple’s bid to exclude testimony from two experts, including Nobel Prize-winning economist Daniel McFadden, about how it may have harmed consumers, deemed unreliable.
Apple, based in Cupertino, Calif., did not immediately respond to requests for comment.
Mark Rifkin, a consumer advocate, said he was “very pleased” and looked forward to the next phase of the 12-year-old antitrust case. He estimated the class suffered “billions of dollars in damages.”
Class actions can result in larger recoveries at lower costs than if plaintiffs are forced to litigate individually.
Rogers has also overseen an antitrust lawsuit against Apple by Epic Games, the creator of the “Fortnite” video games.
In September 2021, he ordered Apple to loosen restrictions on where developers can solicit payments from customers for their apps, but he stopped short of requiring Apple to allow downloads for iPhones outside of the App Store.
A federal appeals court upheld much of the ruling in April 2023, and the U.S. Supreme Court declined to intervene last month.
The case is Apple iPhone Antitrust Litigation, US District Court, Northern District of California, No. 11-06714.
