British app developers have been informed that their billion-dollar class action lawsuit against Apple is set to move forward, following Apple’s unsuccessful attempt to dismiss the case for the second time.
The developers involved in the antitrust lawsuit are seeking reimbursement of up to £785 million ($995 million) in commissions from app sales, making another push against Apple’s dominance in the iPhone app market.
Linked to antitrust cases in the EU and US
The central claim is that until recently, developers had only one avenue to sell their iPhone apps: the official App Store. This scenario granted Apple monopolistic control over the sale of iOS applications, enabling the company to impose commission rates that developers were compelled to accept.
The most significant change arose in the EU, where the Digital Markets Act mandated that Apple permit the sale of iPhone and iPad apps through alternative app stores. Apple attempted to make this option less appealing for developers, often described as “malicious compliance.” While it is likely that the company will have to revise its terms, the legislation has nonetheless established a crucial principle.
In the US, Apple experienced a minor setback when the Epic Games lawsuit concluded that the company must allow developers to link to other purchasing methods for in-app content. Once again, Apple complied in a manner that seemed to safeguard its commission structure, with indications from the judge suggesting that Apple may be found in violation of her ruling.
Class action lawsuit against Apple will advance
A class action lawsuit was initiated last year in the UK on behalf of 1,566 British app developers, claiming that Apple’s monopoly over iPhone applications coerced them into accepting excessive commission rates. This case has now expanded to represent approximately 13,000 developers.
Apple has made two attempts to thwart the lawsuit. The first sought to dismiss the case by arguing that a British court lacked jurisdiction over commissions for app sales conducted outside the UK, a claim denied earlier this year.
Subsequently, Apple appealed to the UK’s Competition Appeal Tribunal (CAT), requesting to block the case. Bloomberg reports that the CAT has now denied this request.
The iPhone manufacturer could face repayment of as much as £785 million to potentially 13,000 developers, according to Sean Ennis, a UK competition policy professor leading the claim. Judges at the UK’s Competition Appeal Tribunal have cleared the way for the lawsuit to proceed after dismissing the US company’s motions to halt it.
Ennis is well-equipped to advocate for this case, having held roles in both the European Commission and the US Department of Justice.
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