Apple is facing a major lawsuit against millions of British iPhone and iPad users. In the case heard by the UK Competition Court, Apple is accused of taking excessive App Store commissions through its dominance in the store.
Apple under fire over App Store commissions
The plaintiffs said that Apple’s 30 percent commission for in-app purchases was monopolistic. Accordingly, they argued that it resulted in overpayments of $1.8 billion to UK users.
The lawsuit alleged that Apple’s complete control over app distribution allowed the company to impose unfair terms and profit. It was alleged that by blocking rival app stores, Apple created a closed market for both developers and consumers.
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Apple denied these accusations. Company lawyer Marie Demetriou said the vast majority of developers do not pay any commissions and that the fees charged reflect the “value Apple provides through the iOS ecosystem.”
The plaintiffs also argued that Apple violated its intellectual property rights and tried to force it to share its technology without compensation. At a time when regulators in the US and Europe are questioning the fairness of app store fees, Apple is likely to continue to be in trouble for some time.
The legal pressure on companies like Apple, Google, Meta and Amazon is marking a turning point in how these companies operate their digital marketplaces.
