Apple is facing a $1 billion lawsuit in the UK from over 1,500 app developers who claim that the company’s App Store fees are excessive and constitute abusive pricing.
The lawsuit is the result of community dissatisfaction with abusive charges from the App Store — the official app store for iPhone, iPad and Mac — that can be as high as 30 percent on the value of in-app purchases.
The whistleblowers accuse big tech of abusing its monopoly on the App Store, the only legitimate way to download and install software on iOS, to charge excessive fees in the process of selling paid apps and functionality, such as subscribing to a service. The class action, filed with the Court of Appeals for Competition, is estimated at $1 billion.
Sean Ennis, an economist and professor at the University of East Anglia, is leading the lawsuit against Apple. The expert believes that the company’s commission, which ranges from 15% to 30% of the value of an in-app purchase, constitutes an abusive charge that harms the platform’s app developers.
“Apple’s charges to app developers are excessive, and are only possible due to its monopoly on app distribution on the iPhone and iPad,” Ennis said. “The charges are unfair in their own right and constitute abusive pricing, harming app developers and buyers.”Sean Ennis, an economist and professor at the University of East Anglia
The lawsuit accuses Apple of abusing its dominant position by charging a 15% to 30% fee on in-app sales in the App Store. The developers claim that the charges are unfair and harm both app developers and app buyers. The lawsuit is being filed in the Competition Appeal Tribunal on behalf of the app developers.
The developers argue that Apple’s App Store fees are excessive and that the company is using its dominant position to charge unfair prices. The lawsuit is seeking damages of up to $1 billion1. Apple has not yet commented on the lawsuit.
Such charges have a significant impact on Apple’s quarterly revenue. According to the company’s latest financial reports, quarterly revenue from its service offerings which include in-app purchases on iOS and iPadOS is about $20 billion, a record from previous years.
This lawsuit is the latest in a series of legal challenges against Apple’s App Store fees, with regulators and developers around the world calling for changes to the company’s policies.