Pepper v. Apple Inc.

Plaintiffs, purchasers of iPhones and iPhone apps, filed suit against Apple, alleging that Apple has monopolized and attempted to monopolize the market for iPhone apps. The court held that plaintiffs lacked antitrust standing pursuant to Illinois Brick Co. v. Illinois. The court agreed with the Third and Tenth Circuits and read Rule 12(g)(2) in light of the general policy of the Federal Rules of Civil Procedure, expressed in Rule 1. The court concluded that any error committed by the district court in ruling on Apple’s motion to dismiss under Rule 12(b)(6) for lack of statutory standing under Illinois Brick, was harmless. The court explained that Apple is a distributor of the iPhone apps, selling them directly to purchasers through its App Store. Because Apple is a distributor, plaintiffs have standing under Illinois Brick to sue Apple for allegedly monopolizing and attempting to monopolize the sale of iPhone apps. Accordingly, the court reversed and remanded for further proceedings. View "Pepper v. Apple Inc." on Justia Law