Apple Faces Class Action Lawsuit from UK Developers Over App Store Commission

Apple is currently facing a class-action lawsuit from a group of UK app developers who are accusing the company of anti-competitive practices. The lawsuit is based on the claim that Apple’s commission fees on App Store sales are putting undue financial pressure on the UK tech industry.

According to Sean Ennis, a UK competition policy professor leading the claim, Apple may need to repay up to £785 million ($995 million) in fees to around 13,000 developers if the lawsuit is successful. This legal action received the green light to proceed from the UK’s Competition Appeal Tribunal after Apple’s attempts to halt the case were dismissed.

Ennis pointed out that Apple has been charging commission fees on UK-based app developers since July 25, 2017, for app sales on the App Store or in-app subscriptions purchased by iOS device users. The lawsuit is being funded by a third-party litigation funder, Harbour Litigation Funding.

Despite this legal battle, Apple’s App Store continues to be a significant platform for developers. Most UK developers do not pay any commission fees at all, and for those who do, about half pay a modest 15 percent fee. These fees are minimal considering the benefits that the App Store provides to developers in terms of storage, review, organization, and distribution to over one billion users.

The Apple App Store truly revolutionized the way apps are distributed and consumed, sparing developers from the hassle and expenses of traditional distribution methods like CD burning, boxing, shipping, and stocking on store shelves. This move has significantly streamlined the app development process and broadened the reach of developers to a vast user base.

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