Apple Seeks Dismissal of $1 Billion UK Lawsuit Over App Store Fees

Manoj Prasad
  • 1,566 app developers in the UK are suing Apple for $1 billion over its App Store fees, arguing that Apple's 15% to 30% commissions for in-app payments are exploitative pricing.
  • Apple wants the case dismissed because UK law does not apply to the entire issue, and its attorneys claim that 85% of App Store developers pay no commission.
  • The outcome of this legal case could affect major tech companies' business models and the app economy, affecting the app development community and the IT sector.

Apple is up against a big court battle in the UK as it tries to throw out a lawsuit that 1,566 app developers filed over the company’s App Store fees.

Apple is being sued for $1 billion because it says that its 15% to 30% fees for using its in-app payment system are too high and unfair pricing.

Sean Ennis, a professor at the University of East Anglia’s Center for Competition Policy, is leading the lawsuit. He is getting help from the law company Geradin Partners.

Ennis said that “Apple’s charges to app developers are excessive, and only possible due to its monopoly on the distribution of apps onto iPhones and iPads.”

He also says that these fees are unfair and hurt both app makers and people who buy apps. According to Apple, 85% of developers on the App Store do not pay any commission at all. This is to protect their position.

The claim is being heard at the Competition Appeal Tribunal. Apple wants the case to be thrown out because it doesn’t follow UK law in its entirety. The outcome of this court case will have big effects on the community of app developers and the tech business as a whole.

The App Store is part of Apple’s services business, which has seen rapid income growth in recent years and now makes around $20 billion a year.

People will be paying close attention to how this court case ends because it could change how big tech companies make money and how the app economy works in general.

SOURCES: Reuters, US News
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