Apple is facing a new class-action lawsuit from iOS developers who claim that the company uses its monopoly in the App Store to impose “profit-killing” commissions.
Filed on Tuesday in the U.S. District Court for the Northern District of California in San Jose, the lawsuit argues that the tech giant’s practice of instating a 30 percent commission rate on all app sales is anticompetitive and “sets the stage for Apple to abuse its market power.”
The suit also takes aim at Apple’s minimum $0.99 price requirement for paid apps in the App Store and in-app purchases, as well as the annual $99 Apple Developer fee, calling these policies “especially damaging to smaller and new developers.”
“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 of the law firm Hagens Berman, which is representing the plaintiffs.
“In a competitive landscape, this simply would not happen.”
The lawsuit seeks to force Apple to end its monopoly and allow competition in the distribution of iOS apps.
It also seeks to end Apple’s pricing requirement including the minimum price mandate of 99 cents for paid apps.
Apple did not immediately respond to a query on the lawsuit.
In the past, Apple has defended its control of the App Store, saying it enables the iPhone maker to protect against malicious software and maintain quality standards.
Last month, the Supreme Court ruled 5-4 that consumers could proceed with a separate lawsuit on app pricing, rejecting Apple’s argument that consumers lacked standing because the tech giant was merely an intermediary with app developers.
The class-action lawsuit from 2011 maintains that Apple abuses its monopoly position, resulting in higher prices.
