Apple on the brink of a lawsuit in the UK

The tech giant faces a lawsuit for alleged market dominance

US-based tech giant Apple is facing a £785m lawsuit in the UK over its alleged dominant position and the fees it imposes on developers using its app platform.

The lawsuit was filed last Tuesday by University of East Anglia competition policy professor Sean Ennis, representing more than 1,500 British developers, before the Competition Appeal Tribunal.

In a statement, the academic argued that the 30% commission that Apple charges for sales in the App Store is an anticompetitive rate within the British technology industry, and that the plaintiffs should receive compensation of up to 785 million pounds.

It is not the first time that Apple has faced criticism from antitrust authorities in various countries due to the aforementioned 30 % commission on all purchases made through the App Store, a crucial platform for application creators.

The UK competition regulator had already launched an investigation into Apple’s practices in 2021 related to this specific issue.

For its part, Apple has responded by claiming that developers have the option of offering their products directly to users through any Internet browser, without having to use its platform.

In addition, they point out that most creators do not pay commissions to Apple and that, in fact, many applications are subject to a 15 % commission thanks to the exceptions applied to small businesses.

K. Tovar

Source: Descifrado

(Reference image source: Daniel Romero, Unsplash)

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