Apple is currently embroiled in a substantial class action lawsuit in the UK, amounting to £785 million ($1 billion), which has been filed by more than 1,500 app developers in relation to its App Store fees.
Apple Faces £785 Million Class Action Lawsuit by App Developers
While the company’s services business, including the App Store, has experienced rapid revenue growth, reaching approximately $20 billion per quarter, the fees charged by Apple to certain app makers, ranging from 15% to 30%, for using the in-app payment system have been met with criticism from developers and have also attracted scrutiny from antitrust regulators in various countries.
Apple has defended its practices by pointing out that 85% of developers on the App Store are exempt from paying any commission, and the platform enables European developers to reach markets and customers in 175 countries worldwide.
Accusation Over Excessive Charges and Monopoly Practices in App Distribution
The class action lawsuit in the UK is being spearheaded by Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia and a former economist at the OECD. He is representing 1,566 app developers and is receiving legal guidance from the Geradin Partners law firm.
Ennis accuses Apple of imposing excessive charges on app developers, which he attributes to the company’s monopoly on app distribution for iPhones and iPads. He contends that these charges are unfair and constitute abusive pricing, resulting in harm to both app developers and consumers.
