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Apple App Store Excessive Fees Class Action Lawsuit Overview:
- Who: Apple is disputing a proposed £1.5 billion class action lawsuit filed by British consumers.
- Why: The consumers claim Apple charges excessive fees on its App Store and violates competition laws.
- Where: The class action lawsuit was filed with the Competition Appeal Tribunal in London.
Apple is disputing a £1.5 billion class action claim that the company charges excessive fees on its App Store and commits competition violations.
The tech giant brought its argument to Britain’s Competition Appeal Tribunal last week, contending that its App Store fees reflect the fair market value, Law360 reports.
British consumers have argued they are due compensation from Apple, proclaiming the company has abused its market dominance by issuing surcharges such as purchase fees on its App Store.
Apple has argued that its prices, which exceed the cost of building and maintaining its App Store, are what they are due because of the economic value the platform brings to developers, reports Law360.
The company also argues that fees charged by companies such as Paypal are not relevant since they are not being compared to those charged by the Apple App Store.
Apple Class Action Seeks Compensation For 20M UK Customers
The class action lawsuit asks for compensation for 20 million customers in the UK and for Apple to end its policy of taking a 30% cut of App Store purchases, Law360 reports.
Consumers claim Apple also violates European and UK competition laws by forcing iPhone and iPad users to make purchases using the company’s payment processing system, which also charges a commission.
Apple has argued that the commission it charges is an industry standard and that developers for 84% of the apps on its App Store don’t have to pay anything at all, according to Law360. Further, Apple claims that the majority of developers pay a reduced commission rate of 15%.
Last year, consumers were able to join a class action settlement made to resolve allegations Google took an excessive cut of app purchases made on its Google Play Store.
Have you paid what you believe was an excessive fee when making a purchase on Apple’s App Store? Let us know in the comments!
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3 thoughts onApple Class Action Alleges App Store Charges Excessive Fees
Prices have always been excessive. Normal apps cost more on apple due to fees – this is unfair.
I use the apple App Store on my iPhone. I have to use Apple Music instead of YouTube Music when I prefer YouTube Music because it’s better, but it costs so much more due to apples ridiculous fees!
This has happened to me on a few occasions