Apple's attempt to dismiss a lawsuit nearing the billion-dollar mark has been denied, as a judge ruled that the tech giant must confront accusations of imposing unjust commission fees on over 1,500 UK-based developers. Spearheaded by Sean Ennis, a competition law expert and economist, the case alleges that Apple levied unfair charges of up to 30% on developers. Ennis's legal team asserts that Apple, wielding its dominant market position in app distribution, engaged in abusive practices. Consequently, they are pursuing damages.
Regulatory scrutiny on Apple's fee structure has intensified both in the US and Europe. While Apple contends that the vast majority of developers on its platform are exempt from commissions, it has been compelled by EU legislation to permit alternative app sources. In the US, adjustments to the App Store were made following protracted litigation with Epic Games.
During a hearing in January, Apple's counsel, Daniel Piccinin, argued that developers lacked standing in the UK unless charges were incurred via the UK App Store. However, Judge Andrew Lenon rejected Apple's bid to dismiss this aspect of the case. Lenon deemed Ennis's legal team capable of demonstrating that Apple's commission overcharges to UK-based developers, pertaining to transactions on non-UK platforms, constituted actionable conduct within the UK.
In addition to this lawsuit, Apple faces another concerning allegedly defective iPhone batteries, affecting approximately 24 million users. Although both cases are slated for trial in 2025, Apple continues to contest them vigorously.