Apple seeks dismissal of $1 billion App Store lawsuit in the UK

  • Apple is battling a $1 billion App Store lawsuit in the UK, requesting a dismissal.
  • Apple faces global criticism for its 15%-30% developer fees, leading to legal challenges and antitrust concerns.

Apple requested on Tuesday that a London tribunal dismiss a mass lawsuit, worth around $1 billion, filed on behalf of over 1,500 app developers. This complaint, which may be valued up to £785 million ($998 million) and is one of many that the tech giant is facing in the UK, claims that Apple unfairly charged up to 30% in commissions to third-party developers on purchases of applications.

App Store revenue surge sparks legal challenge

The App Store is part of Apple’s services division, which has witnessed a sharp increase in income over the past several years, reaching $20 billion in quarterly sales. Nonetheless, app developers and antitrust authorities worldwide have targeted the corporation for its 15%-30% fees that the company charges some app developers for using an in-app payment mechanism. According to earlier statements from Apple, 85% of developers on the App Store do not pay any commission.

On behalf of 1,566 app developers, Sean Ennis, a professor at the University of East Anglia’s Centre for Competition Policy and a former Organisation for Economic Co-operation and Development (OECD) economist, is bringing a case in the UK at the Competition Appeal Tribunal (CAT).

Also read: Apple challenges US ban on watch Series 9 and Ultra 2

Legal battle unveils controversy

Daniel Piccinin, an attorney for Apple, stated that developers are not eligible for a claim in the UK unless they were billed for transactions made via the UK App Store. The company asserts that this would only apply to a tiny percentage of the claimants.

But according to documents filed in court by Ennis’s lawyer, “(Apple) has come to the UK to offer services to UK businesses on a UK market and has abused its position by overcharging them.” Thus, he contended, the lawsuit may proceed, and UK law would apply throughout.

The company is also involved in a different lawsuit regarding purportedly faulty iPhone batteries. The lawsuit claims Apple “throttled” certain phone models’ batteries through software updates and added a power management tool that reduced performance.

Also read: Apple stock price suffers consecutive downgrades, hits 8-week low


Sylvia Shen

Sylvia Shen is an editorial assistant at Blue Tech Wave specialising in Fintech and Blockchain. She graduated from the University of California, Davis. Send tips to

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *