App Store: British developers sue Apple

Not only in the European Union, but also in the former EU member Great Britain, Apple is facing a rough wind because of its app store business policy. In the United Kingdom, a lawsuit is currently being brought by British app developers who are accusing Apple of anti-competitive behavior due to the amount of commission it charges on app and in-app purchases and are demanding compensation.

This action has now been admitted for further hearing by a British competition court, the Competition Appeal Tribunal. Apple had lodged an appeal against this, but this was rejected, as reported by the US financial news agency Bloomberg. If the plaintiffs prevail in the proceedings, it could be expensive for Apple. According to the report, a claim for damages totaling 785 million British pounds is on the table. This is the equivalent of around 945 million euros.

13,000 developers affected

Specifically, it is about the 15 to 30 percent commission that developers have to pay to Apple for each app or in-app sale. While this was initially set at a flat rate of 30 percent, Apple lowered the fee for proven small, low-turnover developers after criticism became increasingly loud. The lawsuit covers a period beginning in July 2017 and involves around 13,000 affected developers, each of whom is to receive an average of 60,000 pounds, according to the statement of claim.

While Apple's business practices are the subject of lawsuits in the USA and now in the UK, the iPhone manufacturer and its App Store are subject to far-reaching legal regulation in the European Union. The Digital Markets Act (DMA) stipulates that Apple must enable alternative marketplaces for apps and so-called sideloading of websites in Germany, among other countries. Apple sees this as a major security risk.

Proceedings with a signal effect

The plaintiff in the UK is Prof. Sean Ennis, who has already been heard on Apple's business policy by the EU Commission and the US Department of Justice. The lawsuit is supported by Harbour Litigation Funding, a professional litigation funder from the UK, which finances legal disputes such as the current one and receives a share of the compensation if it is successful.

Apple did not comment on the lawsuit to Bloomberg. The outcome is expected to have a signal effect that could also have an impact on other countries where Apple has been criticized for its business practices.

(mki)