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Apple Faces UK Class Action Lawsuit Over App Store Chargers
The class-action lawsuit mirrors one directly from app developers.Â
Apple is facing a a class-action lawsuit in the UK claiming that the company is using its dominant position to overcharge app developers, leading to higher costs for UK consumers.
The lawsuit is the first to target a Big Tech company under the UK’s class action-style legal system, which is being heard at London’s Competition Appeal Tribunal.
Apple is facing a similar and separate case from directly from developers.
Both lawsuits allege that Apple is leveraging its dominant market position by charging app developers a 30% commission on any apps sold on its App Store, the cost of which trickles down to UK consumers who lose up to £1.5 billion.
Apple restricts any other application store from functioning on its products, essentially coercing app developers to sell their applications via the App store.
In-app purchases, including subscriptions, made on Apple devices also require a commission to the tech giant.
Apple is no stranger to this argument, as it faces continued scrutiny from the EU and the US over its developer fees.
The EU already ruled that Apple’s App Store practices were outwith their strict competition rules, giving Apple a year to respond or comply.
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In this current lawsuit, Apple claims that most developers – around 85 – pay no commission, and their application ecosystem offers numerous benefits, from its platform to its security.
The company’s lawyer, Marie Demetriou, also claims that the class-action case sidesteps Apple’s intellectual property rights, claiming that giving developers the ability to simply use their technology with no limitations or chargers was “expropriation of property rights masquerading as competition.”
Apple is not the only tech giant facing a similar charge. Google is set to face a lawsuit from app developers claiming that it overcharges app developers for access to its Play Store, which is widely used across Android devices.
