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Apple is facing a class-action damages claim in the UK, brought on behalf of UK-based developers. The lawsuit alleges that Apple has abused its dominant position by charging a 30% fee on in-app sales made by app makers on its App Store. The claim is seeking compensation that could amount to £800 million (over $1 billion).
The lawsuit is being led by Dr. Rachael Kent, a lecturer in the School of Management at King’s College London. She argues that Apple’s 30% commission is “excessive” and “unfair,” and that it stifles competition and innovation in the app market. The claim alleges that Apple’s practices have resulted in higher prices for consumers and limited choices for developers.
The lawsuit also claims that Apple’s requirement for developers to use its in-app purchase system, which is subject to the 30% fee, is anticompetitive. Developers are not allowed to direct users to alternative payment methods outside of the App Store, effectively forcing them to use Apple’s payment system and pay the commission.
This is not the first time Apple has faced legal challenges over its App Store practices. In the US, the company is currently embroiled in a high-profile legal battle with Epic Games, the maker of Fortnite. Epic Games has accused Apple of anticompetitive behavior and monopolistic practices, particularly regarding the 30% commission.
Apple has defended its App Store policies, stating that they are designed to ensure a safe and secure platform for users. The company argues that the commission helps fund the maintenance and improvement of the App Store, as well as providing developers with access to a large and engaged customer base.
Top things to Know
– Apple is facing a class-action damages claim in the UK brought on behalf of UK-based developers.
– The lawsuit alleges that Apple has abused its dominant position by charging a 30% fee on in-app sales made by app makers on its App Store.
– The claim is seeking compensation that could amount to £800 million (over $1 billion).
– The lawsuit argues that Apple’s 30% commission is excessive, unfair, and anticompetitive.
– Apple’s requirement for developers to use its in-app purchase system, subject to the 30% fee, is also challenged as anticompetitive.
– Apple has defended its App Store policies, stating that they ensure a safe and secure platform for users and provide developers with access to a large customer base.
Original article: https://techcrunch.com/2023/07/24/apple-targeted-in-app-store-antitrust-damages-suit-thats-seeking-1bn-for-uk-developers/
