Apple, Inc., controls which apps can run on its iPhone software. Apples App Store is a website

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Apple, Inc., controls which apps can run on its iPhone software. Apple’s App Store is a website where iPhone users can find, buy, and download the apps. Apple prohibits third-party developers from selling iPhone apps through channels other than the App Store, threatening to cut off sales by any developer who violates this prohibition. Apple also discourages iPhone owners from downloading unapproved apps, threatening to void iPhone warranties if they do. Seven iPhone app buyers filed a complaint in a federal district court against Apple. The plaintiffs alleged that the firm monopolized the market for iPhone apps. [ In re Apple iPhone Antitrust Litigation, 846 F.3d 313 (9th Cir. 2017)] (See Section 2 of the Sherman Act.)

(a) Using the Decision step of the IDDR approach, provide reasons why Apple might attempt to protect iPhone software by setting narrow boundaries on the sales of related apps and aggressively enforcing them. 

(b) Explain why Apple’s actions in this case might be considered unethical.

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Business Law Text And Cases

ISBN: 9780357129630

15th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller

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