On Tuesday Apple has been slapped with a $1 billion class action lawsuit in the UK from over 1500 app developers over claims that its fees amount to “abusive pricing.”
According to the academy behind the legal action, Apple charges some app markers exorbitant commission rates of 15-30%. The in-app payment system has been criticised by app developers and targeted by antitrust regulators in several countries.
The technology giant service division has grown rapidly and generated revenue of $20.9 billion in the three months to April 1st.
According to reports, Apple charges commissions for in-app payments of up to 30 per cent. The group has previously argued that 85% of developers do not pay any commission and that it helps European developers to access markets and customers in 175 countries around the world through the App Store.
According to Reuters reports, “the UK lawsuit at the Competition Appeal Tribunal is being brought by Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia and a former economist at the OECD, on behalf of 1 566 app developers.”
“Apple’s charges to app developers are excessive, and only possible due to its monopoly on the distribution of apps onto iPhones and iPads,” Ennis said in a statement. “The charges are unfair in their own right, and constitute abusive pricing. They harm app developers and also app buyers.”
