In the UK, Apple is confronted with a substantial $1 billion lawsuit filed by app developers
Apple, the American tech giant, is confronted with a substantial $1 billion class action lawsuit in the UK, filed by over 1,500 app developers. The lawsuit revolves around Apple’s App Store fees, which have become a point of contention among the developers.
On Wednesday, July 25, a lawsuit was filed at the Competition Appeal Tribunal by Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia and a former economist at the OECD. The lawsuit is on behalf of 1,566 app developers. Ennis alleges that Apple’s charges to app developers are excessive, made possible by its monopoly on app distribution for iPhones and iPads. He asserts that these charges are unfair and constitute abusive pricing, causing harm to both app developers and buyers.
According to Reuters, Apple’s service business has experienced rapid revenue growth, reaching approximately $20 billion per quarter. However, the commissions of 15% to 30% that the company imposes on some app makers for using their in-app payment system have faced criticism from app developers and have drawn attention from antitrust regulators in various countries.
