A significant class action lawsuit in the UK is targeting Apple's commission fees on App Store sales, alleging that the charges, which range from 15% to 30%, are anti-competitive and detrimental to the technology sector.
Spearheaded by Sean Ennis, a competition policy expert with experience at the U.S. Department of Justice and the European Commission, the case seeks £785 million ($995 million) in damages on behalf of UK app developers. The lawsuit argues that Apple’s commission structure effectively acts as a tax on innovation, restricting opportunities for developers since July 2017.
The case, which could benefit up to 13,000 app creators, marks an expansion of an earlier lawsuit that represented a smaller group of around 1,500 developers. Ennis secured funding for the lawsuit through Harbour Litigation Funding, bolstering the case’s capacity to challenge one of the world's largest tech companies. Developers behind the suit claim Apple’s practices harm their ability to compete, particularly as Apple remains the gatekeeper of its tightly controlled iOS ecosystem.
This lawsuit is the latest in a series of global challenges against Apple's App Store policies. Apple recently adjusted its terms in response to European Union regulations, but the changes have faced criticism from watchdogs who argue they may worsen conditions for developers. Despite these legal pressures, Apple has defended its approach, asserting that its App Store provides unparalleled security, development tools, and access to a vast global audience. The company also highlights that many developers incur no commission and can reach users via web browsers, where Apple’s policies don’t apply.
As the lawsuit moves forward, it has the potential to reshape how digital marketplaces operate, raising broader questions about fairness and competition in the tech industry. The outcome could significantly impact app developers not just in the UK, but globally, as similar legal battles continue to unfold.