London, January 24, 2024 – Apple (AAPL.O) has urged a London tribunal to dismiss a substantial lawsuit valued at around $1 billion, brought forth by over 1,500 app developers concerning the App Store fees. The case, with an estimated worth of up to 785 million pounds ($998 million), alleges that Apple imposed unfair commissions of up to 30% on purchases made by third-party developers.
The lawsuit, filed at the Competition Appeal Tribunal (CAT) last year and spearheaded by competition law professor Sean Ennis, contends that Apple abused its dominant position in the app distribution market, seeking damages for UK-based developers. Apple refutes the claims, asserting that 85% of developers on its App Store do not pay any commission and argues that the case is “unsustainable.”
Apple’s lawyer, Daniel Piccinin, argued that developers in the UK can only claim if they were charged on purchases made through the UK App Store, a condition that would apply to only a small minority of the claimants. However, Ennis’ lawyer, Paul Stanley, countered that Apple, by offering services in the UK market, has subjected itself to UK law, making the entire case applicable under UK jurisdiction.
This legal battle adds to Apple’s existing challenges, as the tech giant is already facing a separate mass lawsuit over App Store commissions on behalf of approximately 20 million UK users. The company is also contending with another case related to allegedly defective iPhone batteries, involving around 24 million iPhone users. Both cases, not expected to reach trial before 2025, contribute to Apple’s legal complexities in the United Kingdom.
($1 = 0.7865 pounds)
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