Apple attempted to have a lawsuit in the UK dismissed but was unsuccessful. The lawsuit, worth nearly $1 billion, was filed against the company by 1,500 UK-based developers. Today, a UK court ruled that the lawsuit can proceed to trial, which is expected to happen next year.
The developers claim that Apple unfairly charged them commission fees of up to 30% on app and content purchases. They allege that Apple is misusing its dominant position in the app distribution market for iPhones and other Apple devices, and are seeking damages as a result.
During a hearing in January, Apple’s lawyer argued that developers cannot file a claim in the UK unless they were charged for purchases made through the UK App Store. However, the judge disagreed, stating that “Apple’s overcharging of commission to app developers based in the UK in relation to commerce transacted on non-UK storefronts did amount to conduct implemented in the UK”.
This is not the first time Apple has faced such allegations. In the EU, Apple is now required to allow alternative app stores and permit developers to charge users outside of the App Store if they choose to do so.