The App Store: Is It A Monopoly?

Here is an interesting development. According to Macrumors, a U.S. Appeals Court has ruled that iOS users can proceed with a lawsuit against Apple. The reason is that Apple has created an illegal monopoly out of their App Store. This means that Apple has taken control of the entire iOS ecosystem and there is no other option for users to buy these apps from a different store.

Since there is no other store to compete with Apple’s App Store, the argument is that prices remain expensive and there is no competition in the market. It is a strange case that this was brought against Apple, especially since developers are the primary party that set the price for the apps. It’s true that Apple takes a share of the profit that developers make but that’s because developers use their service.

Keep in mind that there are other unofficial stores and they are targeted for piracy. For example, if we look at the Android ecosystem, there are other stores where users can download apps but they are mostly pirated. So is there a case against Apple really? At least in our view, we think there is not. If someone is not interested in buying from the App Store then they they might as well purchase an Android phone and buy from the Google Play Store. Instead of a monopoly, the App Store is better described as an oligopoly.