Apple Inc. AAPL has approached a U.K. tribunal with a bold request — to dismiss a lawsuit worth nearly $1 billion. This legal battle, ignited by more than 1,500 app developers, centers on allegations of unfair App Store charges doled out by Cupertino.
Apple’s Legal Maneuver: Apple’s appeal landed in a London tribunal, aiming to quash the colossal lawsuit. The impassioned developers accuse Apple of levying a commission of up to 30% on app and content purchases, as reported by Reuters.
The Legal Tussle: Spearheaded by competition law professor and former OECD economist, Sean Ennis, the case alleges that Apple’s overwhelming dominance in app distribution on its devices has harmed U.K.-based developers.
Apple’s Defense: On the other side, Apple’s legal counsel, Daniel Piccinin, rebuts the allegations by pointing out that 85% of App Store developers are exempt from commission fees. He asserts that U.K.-based claims should only hold merit if they pertain to purchases made through the U.K. App Store, which only a small subset of the claimants have done.
However, Ennis’ legal representation, Paul Stanley, maintains that the entire case falls under U.K. law due to Apple’s overcharging of U.K. businesses.
The Significance: This legal showdown is just one of many that Apple is contending with in the U.K. Notably, Apple is also entangled in a mass lawsuit, approved in 2022, over App Store commissions on behalf of around 20 million U.K. users. Another case involving about 24 million iPhone users and addressing allegedly faulty iPhone batteries was certified last year. Neither of these cases are anticipated to go to trial before 2025.
The current lawsuit adds to a series of events that have placed Apple’s App Store policies under the microscope. Earlier this year, Apple’s revised App Store payment policies faced backlash, sparking potential legal conflicts.
This development emerged shortly after the U.S. Supreme Court dismissed Apple’s appeal in an antitrust lawsuit concerning its App Store.
In another recent development, Apple reportedly settled a $13.7 million fine with Russia’s Federal Antimonopoly Service over alleged abuse of its dominant market position.