Apple Inc. AAPL has sought the dismissal of a lawsuit worth approximately $1 billion initiated by over 1,500 app developers in the U.K., alleging unfair App Store charges. The lawsuit accuses Cupertino of imposing commissions of up to 30% on app and content purchases, as reported by Reuters.
The Legal Battle: Apple has filed an appeal in a London tribunal aiming to quash the substantial lawsuit. The developers maintain that Apple’s market dominance in app distribution on its devices has resulted in harm to U.K.-based developers.
Sean Ennis, a competition law professor leading the case, argues that Apple’s practices have been detrimental to U.K. businesses. Meanwhile, Apple’s legal counsel, Daniel Piccinin, rebuts the allegations by highlighting that 85% of App Store developers are not subject to any commission fees. The legal representation for the developers contends that the entire case falls under U.K. law due to Apple’s alleged overcharging of U.K. businesses.
Importance of the Dispute: This legal tussle is part of a series of lawsuits that Apple is currently contending with in the U.K. The tech giant is also facing a mass lawsuit, approved in 2022, over App Store commissions on behalf of around 20 million U.K. users. Additionally, another case, involving about 24 million iPhone users and concerning allegedly faulty iPhone batteries, was certified last year. Neither of these cases are expected to go to trial before 2025.
The ongoing lawsuit follows a series of events that have subjected Apple’s App Store policies to scrutiny. Earlier in January, Apple’s revised App Store payment policies drew criticism and sparked potential legal disputes. This development followed the U.S. Supreme Court’s rejection of Apple’s appeal in an antitrust lawsuit concerning its App Store. Moreover, Apple has recently settled a $13.7 million fine with Russia’s Federal Antimonopoly Service over alleged abuse of its dominant market position.