UK Court Denies Apple’s Bid to Dismiss Lawsuit Over App Store Fees
On April 12, a London court rejected Apple’s attempt to dismiss nearly a $1 billion lawsuit involving 1,500 app developers. The lawsuit accuses Apple of unfairly charging over 1,500 UK developers unnecessary fees (up to 30%) on the app and content purchases.
The case was filed at the Competition Appeal Tribunal (CAT) last year. Sean Ennis, a competition law professor and economist, leads this case.
Ennis’s legal team claims that Apple misused its dominant market position by controlling app distribution on iPhones and other devices. The plaintiffs are pursuing damages as a result.
In January, Apple’s lawyer, Daniel Piccinin, argued that only developers charged through the UK App Store could file a claim in the UK, which would render many of the claims inadmissible. However, Judge Andrew Lenon overruled this claim, meaning that Apple must face the lawsuit and all 1,500+ claims.
Judge Lenon stated in a written ruling that Ennis’ lawyers could realistically prove that Apple’s high commissions charged to UK-based app developers for sales on non-UK storefronts amounted to actions taken within the UK.
While Apple contends with increased regulatory scrutiny from US and European authorities over its App Store fees, the company maintains that 85% of its App Store developers are exempt from any commission fees.
The European Union has passed new laws that require Apple to allow app downloads from competing sources, such as vendor websites and third-party app stores. In the US, Apple changed its App Store policies after a legal fight with Epic Games, the creator of Fortnite.
The UK court case isn’t expected to begin until 2025.
