iPhone maker Apple has been accused of taking advantage of its market dominance and pocketing an unfair 30 per cent commission from app developers in the United Kingdom (UK), according to reports.
The allegations have been levelled in a class-action lawsuit representing almost 20 million iPhone and iPad users in the region. The users claim they were charged unfairly for app purchases and in-app services owing to Apple’s App Store policies, which have been a contentious subject within the broader tech industry.
The lawsuit, which was heard by a London tribunal on Monday, seeks $1.8 billion in damages. The excessive 30 per cent commission taken from app developers by Apple leads to higher costs for the consumer of its products, the tribunal was told.
“The App Store was a brilliant gateway for a range of interesting and innovative services that millions of us find useful, myself included,” the complainant, who is leading the lawsuit, claims.
“But 13 years after its launch, it has become the only gateway for millions of consumers. Apple guards access to the world of apps jealously, and charges entry and usage fees that are completely unjustified.”
Apple, on the other hand, has defended the commissions, saying the company charges developers standard amount across its App Store.
“We believe this lawsuit is meritless and welcome the opportunity to discuss with the court our unwavering commitment to consumers and the many benefits the App Store and Apple’s valuable technologies have delivered to the UK’s innovation economy,” it says.
Apple is facing a similar $958 million lawsuit by app developers in the UK.
