On Tuesday, Apple (AAPL.O) opened a new tab and requested that a London tribunal dismiss a $1 billion case that was filed on behalf of over 1,500 software developers regarding software Store fees.
The action, which may be worth up to 785 million pounds ($998 million) and is one of several that the tech giant is facing in the UK, claims that Apple unfairly paid up to 30% in commissions to third-party developers on purchases of apps or other material.
Leading the charge in the lawsuit, which was brought before the Competition Appeal Tribunal (CAT) in the previous year, is professor of competition law Sean Ennis, a former OECD economist.
His attorneys are requesting damages for developers located in the UK, claiming that Apple has abused its market dominance for the distribution of programmes on its devices.
However, Apple claims that 85% of developers on its App Store never pay a commission, and the company is requesting that the CAT dismiss the case because its attorneys claim it is “unsustainable.”
Developers cannot bring a claim in the UK unless they were billed for purchases made through the UK App Store, according to the company’s attorney Daniel Piccinin. According to the firm, that would only apply to a very tiny proportion of the applicants.
But according to Paul Stanley, Ennis’ attorney, Apple “has come to the UK to offer services to UK businesses on a UK market and has abused its position by overcharging them” in court documents.
This implies that the action can proceed and is governed by UK law, he claimed.
A class action lawsuit concerning App Store commissions has already been filed against Apple; it was granted permission in 2022 and is being brought on behalf of around 20 million UK users.
In addition, the business was approved last year to represent some 24 million iPhone users in a different lawsuit concerning purportedly faulty iPhone batteries.
Both cases are being contested by Apple, and a trial is not anticipated before 2025.
$1 equals 0.7865 pounds.
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