UK App Developers File $1 Billion Lawsuit Against Apple Over App Store Fees
More than 1,500 app developers in the UK have filed a class action lawsuit against Apple, seeking 785 million pounds ($1 billion) in damages, alleging unfair App Store fees.
Apple’s services business, which includes the App Store, has grown rapidly in recent years and is now about $20 billion in quarterly revenue.
However, app developers have criticized the 15-30 percent fees the company charges some app makers for using its in-app payment system, and it has been targeted by competition authorities in several countries.
Apple has previously said that 85% of developers on the App Store do not pay any fees and that it helps European developers reach markets and customers in 175 countries around the world through the App Store.
The UK action at the Competition Appeal Tribunal has been brought by Sean Ennis, a professor at the University of East Anglia’s Center for Competition Policy and a former OECD economist, on behalf of 1,566 app developers.
He is advised by the law firm Geradin Partners.
“Apple’s charges to app developers are unreasonable and only possible because of its monopoly on distributing apps to iPhones and iPads,” Ennis said in a statement.
“The fees are unreasonable in themselves and are abusive pricing. They hurt app developers and app buyers as well.”
