Apple faces class action over App Store fees

Apple Inc. is facing a class action lawsuit from UK app developers who claim that its commission charges of up to 30 per cent on App Store sales constitute an anti-competitive tax on the tech industry.

The lawsuit, led by UK competition policy professor Sean Ennis, could see Apple repaying up to £785 million ($995 million) in fees to around 13,000 developers.

The UK’s Competition Appeal Tribunal has allowed the lawsuit to proceed after dismissing Apple’s attempts to block it.

Apple has faced global regulatory scrutiny over its app-fee policies and announced changes in January to address EU concerns.

However, these changes have also come under EU scrutiny for potentially worsening conditions for developers.

The lawsuit covers commission fees charged to UK-based developers from July 25, 2017, onwards. Apple has not yet responded to requests for comment. Ennis has secured funding for the claim from Harbour Litigation Funding.

Attribution: Bloomberg

Subediting: M. S. Salama