A group of more than 1,500 developers in the UK has recently filed a class action lawsuit against Apple, claiming that the App Store fee is excessive and that it stems from the company’s app distribution monopoly.
Apple charges developers a commission of up to 30% on transactions made on its platform, which has been a topic of discussion among governments and developers worldwide. The group of 1,566 app developers in the UK believes that Apple’s charges are unfair and constitute abusive pricing, harming both app developers and buyers.
“Apple’s charges to app developers are excessive, and only possible due to its monopoly on the distribution of apps onto iPhones and iPads,” Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia and a former economist at the OECD, said in a statement. “The charges are unfair in their own right, and constitute abusive pricing. They harm app developers and also app buyers.”
However, Apple has previously stated that 85% of developers on the App Store do not pay a commission and that it helps European developers access markets and customers in 175 countries through the App Store.
Additionally, the Small Business Program ensures that developers earning less than $1 million a year are only charged a 15% fee, which increases to 30% once they cross the $1 million threshold.
While there have been disagreements between companies, such as Facebook, and Apple over the 30% fee, Apple has made changes to address some of the issues raised in the past. For example, the $100 developer fee is no longer required, and there are now more granular prices for app purchases.
This is evidence that Apple is not exempt from the sway of higher courts. However, a class action lawsuit doesn't always mean rules will change.
Apple hit with $1 billion class action lawsuit in UK