UK app developers file class action lawsuit against Apple

A class action lawsuit has been launched in the UK against Apple, alleging that the tech giant has abused its dominant position in iOS app distribution to charge excessive commission fees. The case, Ennis v Apple, is being brought to the UK Competition Appeals Tribunal and seeks up to $970 million USD in damages on behalf of UK-based app developers.

What you need to know about UK class action lawsuit filed against Apple on behalf of UK app developers, see if you need to file too

Professor Sean Ennis, an expert in competition policy and former senior economist with the OECD, US Department of Justice, and European Commission, is leading the claim as the proposed class representative. Ennis asserts that UK app developers have suffered financial loss due to Apple’s practices. Specifically, the claim challenges the 30% commission Apple imposes on app sales and in-app purchases made through the App Store.

The claim centers on Apple’s alleged monopoly in the distribution of apps for iOS devices, including iPhones and iPads. Ennis states that Apple has imposed contractual and technical restrictions to ensure the App Store remains the sole platform for iOS app distribution. Developers are prohibited from using alternative app stores or offering apps for direct download, which locks both developers and users into Apple’s ecosystem.

The lawsuit alleges that Apple’s mandatory commission fees are excessive and unrelated to the cost of operating the App Store. Legal representatives argue that Apple’s control over app distribution has enabled it to impose unfair pricing, which harms developers and limits competition. Economic analysis provided for the case indicates that these practices have resulted in extraordinary profits for Apple at the expense of app developers.

According to a report submitted to the US House Judiciary Committee, Apple’s net revenue from the App Store was estimated at $15 billion in 2020, increasing to $18.8 billion in 2022. Meanwhile, operating costs for the App Store were confirmed to be under $100 million annually.

Ennis’s legal team, Geradin Partners, argues that the fees Apple charges developers amount to abusive pricing. Founding Partner Damien Geradin describes the commission as a 'creator tax” that forces developers to pay far more than the actual cost of running the App Store. Geradin emphasizes that the value of iOS devices is directly tied to the contributions made by app developers. Without their apps, customers would not pay premium prices for Apple products.

The opt-out class action is open to approximately 1,566 app developers based in the UK who have sold apps or digital content through the App Store. The claim is fully funded by Harbour, a top-tier litigation funding firm, ensuring developers will not face any costs to participate.

A UK class action against Apple

The UK Competition and Markets Authority has already been investigating Apple’s App Store since 2021, citing developer complaints about the 30% commission and limited distribution options. The lawsuit aligns with broader scrutiny of Apple’s practices, including legislative developments such as the Digital Markets, Competition and Consumers Bill currently progressing through Parliament.

Professor Ennis emphasizes the importance of holding Apple accountable, stating that UK developers deserve compensation for revenue losses caused by Apple’s restrictions and pricing practices. The claim highlights the financial impact on the UK’s tech sector, where funds lost to excessive fees could otherwise be reinvested in innovation and growth.

The case also draws parallels to Kent v Apple, a separate claim awaiting trial that could deliver $1.85 billion USD in damages to UK consumers over similar issues. Ennis’s lawsuit seeks to ensure that developers receive comparable justice for their role in driving the success of Apple’s platform.

Developers affected by Apple’s App Store practices are encouraged to register their interest in the case. By participating, they can stay informed about developments and the pursuit of compensation. As the case progresses, it aims to provide a fair resolution for UK app developers and address the competitive imbalance caused by Apple’s dominance.

For UK-based app developers, this class action represents an opportunity to challenge Apple’s practices and seek compensation for financial losses incurred through the App Store’s fees.