On Tuesday, Apple faced a substantial class-action lawsuit amounting to 785 million pounds ($1 billion), brought forth by over 1,500 app developers in the UK, targeting its App Store fees.
Apple's services business, which includes the App Store, has experienced rapid revenue growth in recent years, reaching approximately $20 billion per quarter.
However, the company's practice of charging app makers commissions ranging from 15% to 30% for using the in-app payment system has faced criticism from app developers and has been the focus of antitrust regulators in multiple countries.
Apple has previously stated that 85% of developers on the App Store do not pay any commission and has highlighted how it facilitates European developers' access to markets and customers in 175 countries through the App Store.
The Competition Appeal Tribunal in the UK is handling the class-action lawsuit, which is being brought by Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia and a former economist at the OECD. He represents 1,566 app developers in this case and is being advised by the law firm Geradin Partners.
Ennis stated, "Apple's charges to app developers are excessive, and only possible due to its monopoly on the distribution of apps onto iPhones and iPads." He believes that these charges are unfair and constitute abusive pricing, causing harm to both app developers and app buyers.
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