Apple faces new class-action suit from iOS developers

Nieuws Mobiel Verenigde Staten 5 JUN 2019
Apple faces new class-action suit from iOS developers

Apple is facing a new class-action lawsuit submitted by iOS developers represented by the law firm of Hagens Berman Sobol Shapiro. The attorneys said the developers believe Apple has cornered the iOS app market with its sole App Store and is using that monopoly to charge “profit-killing” commissions and fees on developers.

The iOS developers said that putting all iOS apps into one marketplace means consumers never see most apps. According to a legal filing made by Apple last year, there were over 2 million apps available on the App Store at the time. 

The suit also notes that Apple has for the past 11 years charged a 30 percent commission rate on all app paid sales conducted through the App Store and on all in-app purchases made in iOS apps. Apple also charges high commissions on subscription bought in-app. The lawyers added that Apple also sets an artificial minimum pricing mandate of USD 0.99 for paid apps or in-app products. It also dictates that all App Store paid purchases end in USD .99. 

The lawsuit was filed in the US District Court for the Northern District of California in San Jose. The lawyers are inviting other affected iOS app developers to join the suit. 

Hagens Berman won a suit against Apple and various publishing companies in 2016. At the time, the company paid USD 560 million to settle the suit, made on behalf of e-book purchasers forced to pay artificially high prices due to price fixing between Apple and the publishing companies. That suit went to the Supreme Court, which ruled against Apple.

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