FIRST, OUR TOP STORY THIS HALF
HOUR, APPLE IS UNDER FIRE, THE
TECHNOLOGY GIANT HEADED TO THE
HIGH COURT TODAY WHERE THE
JUSTICES WILL HEAR ARGUMENT AS
PART OF AN ANTI-TRUST LAWSUIT
OVER THE COMPANY'S APP STORE
POLICIES.
IT ACCUSES APPLES OF BREAKING
ANTI-TRUST LAWS BY MONDAY ON A M
ANTI-TRUST LAWS BY MONDAY ON A N
ANTI-TRUST LAWS BY MONDAY ON A P
ANTI-TRUST LAWS BY MONDAY ON A L
ANTI-TRUST LAWS BY MONDAY ON A Y
ON iPHONE APPS.
THEY ARGUE THE CASE THREATENS
THE E-COMMERCE INDUSTRY.
JOINING US NOW IS JUDGE ANDREW
NAPOLITANO.
>> GOOD MORNING.
I TOOK OUT MY iPHONE.
HERE'S WHAT THE ARGUMENT IS
ABOUT.
YOU LIKE ALL THESE APPS THAT WE
V. YOU BUY THEM FROM THE PEOPLE
THAT YOU GOT THE iPHONE FROM,
APPLE.
>> HARRIS: RATHER
R HARRIS: RATHER
RATARRIS: RATHER
RATHERIS: RATHER
RATHER T: RATHER
RATHER THARATHER
RATHER THANATHER
RATHER THAN BHER
RATHER THAN BUYR
RATHER THAN BUYING THEM
FROM ANOTHER PLACE.
IT DOESN'T SAY YOU'RE
OVERCHARGING.
IT DOESN'T SAY YOU CAUSED ME TO
LOSE MONEY.
IT DOESN'T SAY YOU'RE UNFAIRLY
COMPETING AGAINST ME BECAUSE THE
COMPLAINANTS ARE THE CONSUMERS
WHO SAY WE LOVE THE iPHONE, WE
JUST WANT TO BE ABLE TO GET APPS
FROM ANOTHER SOURCE TO WHICH
APPLE SAYS GET THAT OTHER
PERSON'S iPHONE WHICH OF
COURSE DOESN'T EXIST.
SO IT'S INTERESTING.
THIS WAS FILED IN CALIFORNIA IN
SAN FRANCISCO.
APPLE LOST.
APPLE OF LOST AT THE NINTH
CIRCUIT.
APPLE ASKED THE SUPREME COURT TO
TAKE THE CASE.
YOU HAVE TO GET PERMISSION FOR
THE SUPREME COURT TO TAKE YOUR
CASE.
THERE'S NO AUTOMATIC RIGHT TO
APPEAL.
THE SUPREME COURT SAID YES,
WE'LL HEAR IT BEFORE JUSTICE
KAVANAUGH JOINED.
I THINK JUSTICE KAVANAUGH IS A
VOTE FOR APPLE.
I THINK APPLE WILL PREVAIL.
MARIA: CAN YOU BUY APPS
SOMEWHERE ELSE AND USE THEM ON
YOUR iPHONE?
>> I DON'T KNOW.
I HAVEN'T TRIED THAT.
MARIA: I DON'T KNOW WHERE ELSE
TO BUY APPS, DO YOU?
>> ACCORDING TO THE LAWSUIT, THE
ANSWER TOUR QUESTION IS NO.
MARIA: WELL, THAT'S THE POINT.
>> THEY WANT TO BE ABLE TO BUY
APPS ELSEWHERE.
YOU BUY A GENERAL HE MOTORS CAR,
YOU WANT TO BE ABLE TO GET A
TIRE FROM FORD AND PUT IT ON THE
CAR.
THAT'S THE ANALOGY.
IT'S A ROUGH ANALOGY.
MARIA: I UNDERSTAND IT.
>> THAT'S THE ARGUMENT OF THE
CONSUMERS TO WHICH APPLE SAYS
YOU AREN'T HARMED.
YOU LOVE OUR PRODUCTS AND YOU
USE THEM.
WE HAVEN'T COST YOU A NICK BELL.
MARIA: ANOTHER APP SELLER IS
HARMED.
>> YES.
THAT PERSON IS NOT SUING.
APPLE IS SAYING THE WRONG PERSON
IS IN COURT.
>> WHAT'S THE REMEDY HERE.
LET'S SAY THE PLAINTIFFS
PREVAIL.
WOULD THAT CREATE A NEW COTTAGE
INDUSTRY FOR THIRD PARTY APP
DISTRIBUTORS?
>> YES, IT PROBABLY WOULD.
AND THEIR ARGUMENT IS, THE
PLAINTIFFS' ARGUMENT IS THAT'S
BETTER FOR THE ECONOMY BECAUSE
COMPETITION IMPROVES THE PRODUCT
AND IF THERE WERE MORE APP
STORES, I GUESS WE WOULDN'T CALL
THEM APP STORES BECAUSE IT
WOULDN'T BE AN ION.
LAUREN:
iUREN:
iPHEN:
iPHON:
iPHONE.>> IT WOULD BE AN APP ON
iPHONE.>> IT WOULD BE AN APP OY
iPHONE.>> IT WOULD BE AN APP OU
iPHONE.>> IT WOULD BE AN APP OR
PHONE, A THIRD PARTY APP STORE.
>> THAT WOULD CREATE MORE
COMMERCE AND WOULD GENERATE MORE
WEALTH.
DAGEN: APP PELL -- WHY --
APPLE, WHY COULDN'T APPLE ARGUE
THIS IS OUR PHONE, THIS IS OUR
SYSTEM.
IF YOU DON'T WANT TO USE AN
IPHONE, THEN DON'T.
>> GO BUY AN ANDROID.
DAGEN: GO BUY AN ANDROID PHONE
OR BUY ANOTHER PHONE.
>> THAT ARGUMENT IS BEING MADE
BEFORE THE SUPREME COURT WHEN
THE ORAL ARRESTINGMENT IS BEING
LEAD TODAY.
THAT ARGUMENT WAS MADE AND LOST
IN THE CIRCUIT COURT.
APPLE HAS A DIFFERENT AUDIENCE
WITH THE SUPREME COURT.
THEY'RE GOING TO MAKE THAT
ARGUMENT.
MARIA: THEY COULD COME BACK AND
SAY LOOK, APPLE HAS THE DOMINANT
POSITION IN THE MARKET.
SO I DON'T WANT TO BUY ANOTHER
PHONE.
I WANT TO BUY APPLE.
THEY HAVE THE DOMINANT POSITION.
CAN THE DOMINANT POSITION ALSO
OFFER DIFFERENT APPS FROM A
DIFFERENT COMPANY?
DAGEN: THEY ACTUALLY DON'T --
AREN'T THE BIGGEST PHONE SELLER
IN THE WORLD.
THEY'RE NOT ANYWHERE NEAR THE
LARGEST.
WORLDWIDE THEY'RE NOT.
>> IN THE U.S., THEY'RE -- I
THINK THEY'RE LARGEST IN THE
U.S. THOUGH.
>> HOW MANY APPS ARE THERE?
PROBABLY ABOUT 350,000.
IT'S ALMOST INCONCEIVABLE THAT
-- THE POINT IS WILL THE SYSTEM
TOLERATE, WILL IT ACCEPT AN APP
FROM ANOTHER SOURCE.
THE ANSWER IS NO.
MARIA: THE ANSWER IS NO.
>> IT'S INTERESTING TO SEE IF
THIS COULD IMPACT THE REPUTATION
OF APPLE.
THIS IS ANOTHER PIECE OF A
NARRATIVE THAT SAYS APPLE ISN'T
ON THE SIDE OF THE CONSUMER.
>> LET ME TELL YOU AN ODD THING
IN THE CASE.
THE JUSTICE DEPARTMENT WEIGHED
IN AND FILED A BRIEF ON THE SIDE
OF --
>> APPLE.
VERY UNUSUAL.
SO THE JUSTICE DEPARTMENT WHOSE