Apple faces ₹8,233-crore lawsuit; here's why 1,500 app developers are suing the company
₹8,233 crore) class action lawsuit initiated by over 1,500 app developers in the UK regarding its App Store fees. Apple's services division, which encompasses the App Store, has experienced substantial revenue growth in recent years, reaching approximately $20 billion ( ₹1.63 lakh crore) per quarter. However, the fees charged by Apple, ranging from 15% to 30%, to certain app makers for using their in-app payment system, have drawn criticism from app developers and become a focal point for antitrust regulators in various nations.
The majority (85%) of developers utilising the App Store are not required to pay any commission, said Apple while justifying its stance. Moreover, the company contends that its platform facilitates European developers in accessing markets and customers in 175 countries around the globe. In the UK, the legal action filed at the Competition Appeal Tribunal is led by Sean Ennis, a professor affiliated with the Centre for Competition Policy at the University of East Anglia, who also served as an economist at the OECD.
He represents a group of 1,566 app developers in the lawsuit. He is being advised by law firm Geradin Partners. "Apple's charges to app developers are excessive, and only possible due to its monopoly on the distribution of apps onto iPhones and iPads," Reuters quoted Ennis as saying in a statement.
“The charges are unfair in their own right and constitute abusive pricing. They harm app developers and also app buyers." The UK Competition and Market Authority (CMA) initiated an investigation in November to examine the market dominance of Apple and Google's mobile browsers within the cloud sector. (With Reuters inputs)
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