UK allows extension of developers' lawsuit against Apple for $1 billion

By: Nastya Bobkova | yesterday, 19:25

In the UK, a class action lawsuit against Apple, in which app developers are demanding almost $1 billion, has been allowed to proceed.

Here's What We Know

The Competition Appeal Tribunal (CAT) has rejected Apple's attempt to block the case, which allows more than 13,000 developers to claim compensation for commissions on sales through the App Store.

The lawsuit concerns Apple's practice of requiring developers to sell their apps through the App Store, where the company retains up to 30% of each transaction. The plaintiffs argue that this practice is an abuse of a monopolistic position in the market, as Apple forces iOS users to download apps only through its own store.

The amount of the claim is £785 million (approximately $995 million). This lawsuit is led by Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia, who previously worked as an economist at the OECD (Organisation for Economic Co-operation and Development). He believes that charging fees is unfair and violates the principles of fair competition.

Apple attempted to challenge the jurisdiction of the British courts, arguing that it has no right to consider commissions on app sales outside the UK. However, this argument was rejected, and the lawsuit will continue its course through the UK court system.

Source: Bloomberg