Apple Faces UK Class Action Lawsuit over Alleged Anti-Competitive 30% Fee
Apple is currently at the center of a class action lawsuit in the UK brought by developers who claim that the 30% fee charged by the App Store is anti-competitive. According to reports from Bloomberg, Apple could potentially owe up to £785 million in fees to around 13,000 developers. The argument presented in the claim is that Apple’s 30% cut imposes an unfair “anti-competitive tax on the nation’s tech industry.”
Despite Apple’s efforts to block the lawsuit, the UK’s Competition Appeal Tribunal has given it the green light to proceed. The lead in this claim is the UK competition policy professor, Sean Ennis. This legal battle comes at a time when Apple is already under scrutiny from the UK’s Competition and Markets Authority, along with Google, over their dominance in the mobile market.
Earlier this year, Microsoft criticized Apple for its commission fee, stating that it hindered its ability to effectively monetize its cloud gaming service on iOS. However, the investigation by the CMA into Apple’s in-app payment system was closed in August. Notably, Apple updated its business terms in the EU to permit developers to link to external payment systems around the same time.
These legal developments highlight the ongoing struggle between tech giants and regulators to maintain fair competition within the industry. The outcome of this lawsuit will undoubtedly have significant implications for Apple and the broader tech ecosystem in the UK.
