Apple Has Been Issued A Class-Action Lawsuit By Citizens In The UK Over Its App Store Commission / Digital Information World
Apple is soon to be embroiled in a class action lawsuit filed in the UK related to the excessive commission policies reported by BB for the App Store.
The class action lawsuit has been filed with the London Competition Appeal Tribunal and aims to get the tech giant to insist on cutting all app revenue on the App Store by 30%. That practice, the lawsuit says, essentially deprives consumers to generate additional revenue that Apple unnecessarily capitalizes on. Ultimately, the class action lawsuit claims that consumers of Apple products could be compensated for over £ 1.5 billion. That’s roughly the equivalent of $ 20 million.
Of course, Apple’s spokespersons and lawyers were quick to the draw and responded quickly to the debacle. The company called the lawsuit “unfounded” and actively welcomed the opportunity to bring the matter to court. In a further attempt to prove this, it has been claimed that 84% of the apps on the App Store are not profitable for Apple because they are free or do not make in-app purchases. The tech giant also quickly brought in a 15% reduced commission from developers who owned startups or were making less than $ 1 million a year.
Ultimately, it is about competition and monopoly, an argument that prosecutors will no doubt take up. Apple has a stronghold in the app market and can therefore ask for almost anything it wants. Any positive outcomes from a class action lawsuit perspective will be achieved either through monetary compensation or through a reduction in commission through Apple. As most individuals are sure to find, this isn’t the company’s first App Store commission brawl.
Epic Games is currently involved in a lawsuit against Apple on the same matter, albeit with a slightly different catalyst. Due to Apple’s high prices, Epic offered discounts to its user base if they downloaded the popular MOBA Fortnite directly from their shop. This discount has not been specifically extended to the App Store. As a result, Apple blocked Fortnite from their business, and the game was on.
Ultimately, it will be a while before we see a cumulative result of these two attempts. Class actions, in particular, have a notorious history that spans centuries and even decades. Who knows? Perhaps the free market actually prevailed in the end. Only time will tell, we suppose.
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