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Judge reverses February 2024 class certification
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Apple ( AAPL ) monopolization said to result in higher prices
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Disappointed plaintiffs to review next steps, lawyer says
(Adds additional comment from Apple ( AAPL ), in paragraph 8)
By Jonathan Stempel
Oct 27 (Reuters) - A federal judge decertified on Monday
a class action by tens of millions of Apple ( AAPL ) customers
who accused the company of monopolizing the market for iPhone
apps by banning purchases outside its App Store, leading to
higher prices.
U.S. District Judge Yvonne Gonzalez Rogers in Oakland,
California, reversed her February 2024 class certification
ruling, which let Apple ( AAPL ) account holders who spent $10 or more on
app or in-app content within the last 17 years sue as a group.
In decertifying the class, Rogers said the plaintiffs failed
to provide a model "capable of reliably showing classwide injury
and damages in one stroke" by matching Apple ( AAPL ) accounts to
consumers, while limiting the number of "unharmed" consumers in
the class.
She ruled after an expert hired by Cupertino,
California-based Apple ( AAPL ) found "alarming" errors in the
plaintiffs' model.
These included one that named plaintiff Robert Pepper and
supposed claimant "Rob Pepper" were different people despite
sharing home addresses and credit card information.
They also included the lumping together of more than 40,000
payment records for people whose first name was "Kim," but who
otherwise had nothing in common.
DISAPPOINTED PLAINTIFFS TO REVIEW NEXT STEPS
Mark Rifkin, a lawyer for the plaintiffs, said in an email
"we are of course disappointed" with the decision, and are
reviewing their next legal steps to protect consumers "harmed by
Apple's ( AAPL ) unlawful App Store monopoly."
Apple ( AAPL ) said it was pleased with the decision, and that it
invests "significantly" to make the App Store "a safe and
trusted place for users to discover apps and a great business
opportunity for developers."
Class actions can result in greater recoveries at less cost
than if plaintiffs sue individually.
The plaintiffs said Apple's ( AAPL ) monopoly included charging
excessive commissions to app developers, which would be passed
on to consumers through higher prices to download apps or make
in-app purchases.
Lawyers for the plaintiffs had estimated that classwide
damages could total billions of dollars.
The lawsuit began in December 2011, and the class had
covered users of iOS-powered devices since July 10, 2008.
The case is In re Apple ( AAPL ) iPhone Antitrust Litigation, U.S.
District Court, Northern District of California, No. 11-06714.