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Apple loses UK class action lawsuit over App Store fees

HQ (according to VNA) April 12, 2024 21:40

On April 11, the US technology corporation Apple lost a £785 million ($979 million) class action lawsuit filed in London on behalf of more than 1,500 app developers over its App Store fee policy.

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The case is one of several that the US tech giant is facing in the UK, where it is accused of charging third-party developers up to 30% commission on all financial transactions in its App Store. The case was filed with the Competition Appeals Tribunal (CAT) last year and was brought by Sean Ennis, a professor of competition law and economist.

Mr Ennis’s lawyers argued that Apple had abused its dominant market position to distribute apps on iPhones and other Apple devices. They are therefore suing Apple to seek damages against UK app developers. However, Apple said that 85% of developers on the App Store do not pay any commission.

At a court hearing in January, Apple lawyer Daniel Piccinin argued that app developers could not bring a claim in the UK unless they were charged for transactions made through the UK App Store.

However, in his April 12 ruling, Judge Andrew Lenon rejected Apple's legal team's argument that Apple "charges excessive commissions to UK app developers in connection with commercial transactions transacted on UK app stores."

Apple is also facing a class action lawsuit from around 24 million iPhone users in the UK over faulty iPhone batteries. Apple is seeking to dismiss both cases. The cases are not expected to go to trial before 2025.

HQ (according to VNA)
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Apple loses UK class action lawsuit over App Store fees