Apple Faces $1 Billion Collective Action: So Why?
Apple is facing a $1 billion lawsuit against 1,500 app developers. Details are here!
Apple is grappling with a class action lawsuit filed by 1,500 app developers in Europe seeking $1 billion in damages for App Store fees.
The problem is the 15% to 30% “Apple Tax” from developers for in-app purchases and subscriptions. The lawsuit claims these charges are excessive and are only possible due to Apple’s monopoly on app distribution for iPhones and iPads.
Tech giant Apple has also faced other challenges, including legislative changes in Europe that would allow it to replace the iPhone’s proprietary Lightning port with the standard USB-C port. Also, the European Commission’s Digital Markets Act (DMA) will soon force Apple to allow iPhone users to install apps from third-party iOS app storefronts.
Why Doesn’t Apple Allow External Application Installation?
Apple opposes out-of-store installation for two main reasons. The first is the potential for malware-laden apps to be installed on users’ devices, and the ability for developers to bypass the “Apple Tax” and redirect users to non-Apple payment platforms.
The class action lawsuit was filed by Sean Ennis, a professor at the Center for Competition Policy at the University of East Anglia. Ennis argues that Apple’s pricing is unfair and creates malicious pricing that harms both developers and app buyers.
Apple Faces $1 Billion Collective Action: So Why?
