Apple's Bid To Dismiss $1 Bn Lawsuit Rejected In UK
Apple's attempt to dismiss a lawsuit valued at nearly USD 1 billion has been thwarted by a UK judge, who ruled on Friday that the tech giant must confront allegations of unfair commission fees imposed on over 1,500 UK-based developers.
Spearheaded by Sean Ennis, a competition law professor and economist, the case centres on accusations that Apple charged developers exorbitant commissions of up to 30 per cent for purchases made through its App Store.
The lawsuit, filed at London's Competition Appeal Tribunal (CAT) last year, alleges that Apple abused its dominant market position in the distribution of apps on iPhones and other devices. Ennis' legal team is seeking damages, claiming that Apple's actions constitute unfair competition practices.
Despite Apple's assertion that the majority of developers on its platform do not pay any commission, the company faces mounting pressure from regulators in both the US and Europe over its fee structure. Recent legislative changes in the EU have compelled Apple to permit users to download apps from alternative sources, reflecting a broader challenge to its App Store monopoly.
During a hearing in January, Apple's lawyer, Daniel Piccinin, argued that UK developers could not claim damages unless they were directly charged through the UK App Store. However, Judge Andrew Lenon rejected Apple's bid to dismiss this aspect of the case, stating that Ennis' legal team had a realistic chance of demonstrating that Apple's actions impacted the UK market.
This ruling stresses the global implications of competition law and highlights the challenges faced by multinational tech companies like Apple, whose practices are under increasing scrutiny. In addition to the lawsuit concerning commission fees, Apple is also contending with another case involving allegedly defective iPhone batteries, affecting around 24 million users.
Both legal battles are slated to proceed to trial in 2025, indicating that Apple's legal woes are far from over.
(Inputs from Reuters)
