A class-action damages claim is being brought against Apple on behalf of U.K.-based developers. The suit, seeking a compensation payout of up to £800 million (over $1 billion), accuses the tech giant of abusing its dominant position by imposing a “anticompetitive” 30% fee on in-app sales made by app makers on its iOS App Store. Additionally, it claims that U.K. consumers suffer as developers are deprived of funds that could be used for research and development to drive app innovation.
Professor Sean Ennis Leads the Legal Action
Professor Sean Ennis is a competition policy expert from the University of East Anglia. He is leading a class-action on behalf of over 1,500 U.K.-based developers. Ennis strongly believes that Apple’s actions are harmful and unjust. His background in competition matters motivates him to seek redress for those affected by Apple’s behavior. U.K. litigation funder Harbour is funding the suit.
Opt-Out Class Action Seeks Compensation for Apple Developers
The lawsuit is an opt-out class action. U.K.-based developers don’t need to register individually to be including the in potential winnings. If successful, developers would receive damages based on their iOS app business. Payouts would vary, potentially reaching millions of pounds for some.
Allegations Against Apple and its App Store Practices
The core argument made by the litigants mirrors concerns raised by other prominent companies such as Spotify and Epic. Certain types of apps accuse Apple of imposing an unfair fee. The fee is inconsistently applied, particularly affecting apps with digital content like games and streaming services. The litigants claim that Apple’s App Store fees lead to significant profits for the company but come at the expense of app developers.
Suit Complements Ongoing Regulatory Scrutiny
While competition regulators, including the U.K.’s Competition and Markets Authority (CMA), have been investigating Apple’s App Store policies, the damages lawsuit takes a different approach. It aims to provide compensatory damages for past actions rather than focusing solely on correcting future behavior. The litigants confidently assert their claims and believe that there is commonality among the damages suffered by developers due to Apple’s commission structure.
The legal action aims to hold Apple accountable for its App Store practices. Developers have long complained about alleged anticompetitive behavior. The class-action suit could greatly affect how app developers work on iOS. It may also lead to increased scrutiny of Apple’s dominance in the mobile app market.
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