Apple Seeks Dismissal of $1 Billion App Store Commission Lawsuit
Tech giant Apple is currently facing a mass lawsuit filed by over 1,500 app developers over the fees charged by its App Store, amounting to a staggering $1 billion. The developers have accused the California-based company of charging unfair commissions of up to 30 per cent over the purchases of apps or other content. The case, spearheaded by competition law professor Sean Ennis, was filed at the Competition Appeal Tribunal in London a year ago.
Apple has defended itself by stating that 85 per cent of developers on its App Store pay no commission. The company’s lawyers are seeking for the case to be dismissed, arguing that the claims are unsustainable and that the UK law should only apply to a small minority of the claimants.
In response, Ennis’ lawyer Paul Stanley has argued that Apple has come to the UK to offer its services to UK businesses on a UK market, and has abused its position by overcharging them. This implies that UK law is applicable to the entire case, establishing grounds for it to pertain.
This is not the only legal battle that Apple is facing in the UK. The company is also contending with a separate case over allegedly defective iPhone batteries, which is on behalf of around 24 million iPhone users, and was certified last year. Both of these cases are expected to come to trial after 2025, adding to the legal challenges that Apple is currently grappling with.
Opinion on the topic varies, with some industry experts believing that Apple’s dominance in the market for the distribution of apps on its devices has indeed led to unfair charging practices, while others argue that the high fees are justified by the value that Apple provides through its App Store platform. The outcome of these legal battles will certainly have significant implications for the future of app development and distribution on Apple’s platforms.