Apple targeted by US$1bil class action lawsuit in UK

Apple targeted by US$1bil class action lawsuit in UK

Developers claim they are charged an excessive 30% commission on apps and in-app purchases.

Apple has faced scrutiny in the US and Europe regarding iOS app developers’ inability to sell directly to customers. (AP pic)
LONDON:
US tech giant Apple is being targeted by a class action lawsuit seeking over US$1 billion in damages from developers angry about the high price it charges to market apps to users of its products, organisers said Tuesday.

The lawsuit was launched by competition professor Sean Ennis at the University of East Anglia on behalf of 1,500 UK app developers.

“Apple has abused its dominant market position by charging an excessive ‘commission’ – typically 30% – on apps and in-app purchases of digital content,” said a statement released by the university.

Apple has faced scrutiny in the US and Europe regarding its hold over its App Store and the inability of app developers to sell directly to the tech giant’s customers.

“Apple has a dominant position in the market for app distribution on iOS devices, since the App Store is the only available channel for distributing apps to iOS device users,” Ennis said.

“The charges are unfair in their own right, and constitute abusive pricing. They harm app developers and also app buyers,” said the statement.

The lawsuit is seeking US$1 billion in compensation for the UK developers.

Apple, for its part, points out that developers can make offers to users via any web browser, without going through the App Store.

The California company also asserts that the majority of developers pay no commission to Apple, and insists that most applications are only subject to a 15% commission, thanks to exceptions for small businesses in particular.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.