American Antitrust Institute 2024 Antitrust Enforcement Awards

The American Antitrust Institute (AAI) has selected Dr. Rosa Abrantes-Metz as an honoree in the category of “Outstanding Antitrust Litigation Achievement in Economics.” She will be recognized among colleagues and peers at AAI Awards Night in Washington, DC on October 30.  

Dr. Abrantes-Metz was nominated for her contributions to In Re. Apple iPhone Antitrust Litigation, which involved developing a robust yet accessible approach to determining the competitive “but-for” commission rate.* Her multiple-analysis approach combined a straightforward economic model with a real-world benchmark analysis, distinguishing her work from typically complex models or singular benchmark analyses used in similar cases. Her work assisted in the certification of the class for a twelve-year-old case. 

On February 2, 2024, US District Judge Yvonne Gonzalez Rogers certified a class of consumers who spent $10 or more on Apple apps or in-app purchases since 2008. The certification of this class was achieved after Dr. Abrantes-Metz’s involvement as an expert, thanks to her development of a common methodology to determine and estimate the but-for commission rate in a reliable manner. Her innovative approach provided a clear and defensible framework for calculating the but-for commission rate, which was crucial in overcoming previous challenges and advancing the case. 

Judge Rogers rejected Apple’s bid to exclude testimony from the plaintiffs’ expert witnesses, including Dr. Abrantes-Metz, regarding the impact on class members and the quantification of damages from Apple’s alleged anticompetitive misconduct. The court ruled that Apple’s objections were unfounded, as the plaintiffs’ experts’ methodologies were grounded in sound scientific and economic principles. The court specifically noted: 

• Dr. Abrantes-Metz employed widely accepted scientific, economic, and mathematical principles to calculate the but-for commission rate using a robust economic model.  

• Dr. Abrantes-Metz’s use of an accounting identity for this calculation was validated as a useful and reliable economic tool, with no academic literature challenging its application. 

• Apple’s criticism of Dr. Abrantes-Metz’s model, particularly regarding indirect network effects and assumptions about market conditions, was unfounded. The court highlighted that Dr. Abrantes-Metz’s methodology was appropriately conservative and considered relevant market complexities. 

• The judge praised Dr. Abrantes-Metz’s benchmark analysis as a thorough and reliable validation of her economic model, noting that it confirmed the conservative estimates and provided a credible basis for evaluating damages. 

Apple appealed but failed to persuade the Ninth Circuit US Court of Appeals to consider blocking the class action, which accuses the iPhone maker of monopolizing the market for iPhone apps and keeping prices artificially high for tens of millions of customers. 

* Portions of work performed during the engagement took place prior to the expert joining BRG. Team of economists for the class: testifier Dr. Rosa M. Abrantes-Metz with support from The Brattle Group team, led by Dr. Minjae Song, and Dr. Albert Metz at BRG.