A class action lawsuit has been initiated against Apple Inc., the renowned US tech company, as stated by organizers on Tuesday.
The lawsuit’s objective is to claim damages exceeding $1 billion and has been filed by developers expressing their frustration over the steep app marketing charges levied by Apple to its user base.
With 1,500 British app developers as plaintiffs, the lawsuit was launched by competition professor Sean Ennis from the University of East Anglia.
‘Apple has abused its dominant market position by charging an excessive ‘commission’ — typically 30 percent — on apps and in-app purchases of digital content,’ said a statement released by the university.
Both the United States and Europe have directed their attention toward Apple’s App Store practices and the consequential limitations placed on app developers, preventing them from selling directly to the company’s customers.
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‘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 stated.
‘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 has been filed to claim 785 million pounds ($1.0 billion) in compensation for the British developers.
In December of last year, Apple announced its intention to provide developers with increased flexibility in setting their prices on the App Store.
As of now, Apple has not issued a response to the request for comment.
The scale of this legal action sends a clear message to Apple and the industry at large, highlighting the urgent need for fairer and more transparent policies in the app distribution market.
The outcome may shape the direction of tech industry practices and influence policymakers’ decisions in creating a more equitable and competitive environment for tech companies and users alike.