25-7-2023 (BRUSSELS) More than 1,500 app developers in the UK have brought a class action lawsuit against Apple over its App Store fees, seeking £785 million ($1 billion) in damages. The legal action comes as the commissions charged by Apple, which range from 15% to 30%, have faced criticism from app developers and antitrust regulators in several countries.
Apple’s services business, which includes the App Store, has seen revenues grow at a rapid pace in recent years, hovering around $20 billion per quarter. However, concerns have been raised over the company’s charges for the use of in-app payment systems.
Apple has previously stated that 85% of developers on the App Store do not pay any commission, and that it helps European developers to access markets and customers in 175 countries around the world through the platform.
The lawsuit, which has been filed at the Competition Appeal Tribunal in the UK, is being brought 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 being advised by the law firm Geradin Partners.
Ennis stated that “Apple’s charges to app developers are excessive, and only possible due to its monopoly on the distribution of apps onto iPhones and iPads. The charges are unfair in their own right and constitute abusive pricing. They harm app developers and also app buyers.”
