iOS developers file lawsuit against Apple

Jun 5, 2019 07:46 GMT  ·  By

A lawsuit that’s seeking class-action status claims Apple relies on monopoly tactics to force its App Store on iOS developers, set a series of so-called “profit-killing” commissions, and enforce several other rules that reduce the revenue of app creators.

Attorneys at Hagens Berman, a law firm that in 2016 won a lawsuit against Apple over e-book price fixing, explains that Apple forcing iOS developers to distribute all their apps through the App Store is an anti-competitive approach because the Cupertino take giant takes its own cut of each sale.

“Between Apple’s 30 percent cut of all App Store sales, the annual fee of $99 and pricing mandates, Apple blatantly abuses its market power to the detriment of developers, who are forced to use the only platform available to them to sell their iOS app,” said Steve Berman, managing partner of Hagens Berman is quoted as saying by Yahoo News. “In a competitive landscape, this simply would not happen.”

Third-party app stores on the iPhone

Furthermore, the lawsuit claims Apple uses an anti-competitive set of rules for apps published in the App Store, such as the prices that must end in .99.

One of the claims, however, accused the Cupertino company of not allowing third-party app stores on its platforms on grounds that this is the only way to guarantee a high level of user security.

“Apple admits that it shuts out all competition from app-distribution to iOS device consumers, ostensibly to protect its device customers from bad apps and malware,” the suit reads. “But this is overblown pretense. There is no reason to believe that other reputable vendors, including Amazon, for example, could not host an app store and provide a trustworthy app-distribution system if Apple were to open up its system to other providers.”

The lawsuit alleges that by having no other option than the App Store, developers could end up not being able to promote their apps accordingly, as the always-growing collection of apps in just one store makes it harder for smaller app creators to make themselves noticed.

Apple hasn’t obviously responded to these claims. The lawsuit accuses the company of violating the federal antitrust law and the California unfair competition law.