Apple’s bid to dismiss a nearly $1 billion lawsuit was rejected on Friday, with a judge ruling it must address allegations of imposing unfair commission fees on over 1,500 UK-based developers for app and content purchases. Spearheaded by Sean Ennis, a competition law professor and economist, the case was filed at London’s Competition Appeal Tribunal (CAT) last year, accusing Apple of charging developers commissions of up to 30%.
Ennis’ legal team asserts that the tech giant abused its dominant market position in app distribution for iPhones and other Apple devices, seeking damages as a remedy. Apple has faced increasing regulatory scrutiny in the U.S. and Europe over its App Store fees, but notes that 85% of developers on its platform do not pay any commission. In the EU, new regulations have compelled Apple to allow users to download apps from alternative sources, while in the U.S., adjustments were made to the App Store following a legal dispute with Epic Games, the creator of “Fortnite”.
Apple’s attorney argued during a January hearing that UK developers could not claim damages unless they were charged on purchases made through the UK App Store. However, Judge Andrew Lenon rejected Apple’s bid to dismiss this aspect of the case in a written ruling issued on Friday. Lenon opined that Ennis’ legal team had a reasonable chance of establishing that “Apple’s overcharging of commission to app developers based in the UK in relation to commerce transacted on non-UK storefronts did amount to conduct implemented in the UK”.
Additionally, Apple is contending with a separate case involving allegedly faulty iPhone batteries, representing approximately 24 million iPhone users, which was certified last year.
