Apple sued for $1 billion by UK app developers over app store fees.

Apple Faces $1 Billion Class Action Lawsuit by UK App Developers

By Foo Yun Chee

BRUSSELS ‍(Reuters) – Apple on Tuesday found itself the target of a​ 785-million-pound ‌($1⁢ billion) class action lawsuit brought by more than 1,500 apps developers‍ in ⁤the UK ⁢over its App​ Store fees.

Apple’s services business, which includes‍ the App Store, ‌has seen revenues ​grow⁢ at a rapid pace in the last⁣ few⁤ years and now hovers around $20 billion⁣ per ⁣quarter.

However,‌ the commissions of 15% to 30% that the company charges some app ⁣makers for use of an in-app payment system has ‌been criticised by apps developers⁢ and ‌targeted by antitrust regulators ‌in several ‍countries.

Apple has previously said that​ 85% of⁢ developers on the App Store do ‌not pay any commission ⁢and ‌that⁣ it helps European ⁢developers to access markets and customers in ‌175‌ countries around the world through the App‌ Store.

The ⁣UK lawsuit at the Competition Appeal Tribunal ‌is being brought by Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia and a former‌ economist⁣ at the OECD, on behalf of 1,566 app‌ developers.

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,” Ennis said in a statement.

“The charges are ⁣unfair ⁤in their own right, and constitute abusive pricing. They harm app developers and also app⁢ buyers.”

($1 = 0.7802 pounds)

(Reporting by ⁢Foo Yun Chee; Editing by Aurora Ellis)

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