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September 23, 2020
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Apple is being sued by iOS devs over 'profit-killing' App Store fees

Apple is being sued by iOS devs over 'profit-killing' App Store fees

June 5, 2019 | By Chris Kerr

Apple is being sued by a group of iOS developers for pushing "profit-killing" commissions and fees onto App Store devs. 

California-based developers Donald R. Cameron and Pure Sweat Basketball Inc. filed the class-action complaint against Apple, and take issue with the company's minimum pricing mandates, 30 percent commission rate, and annual $99 developer fee.

The lawsuit alleges the use of such fees puts Apple in direct violation of federal antitrust laws and California's unfair competition laws, and seeks to end the iPhone makers "abusive monopoly" on the distribution of iOS apps and related products. 

The complaint was filed in the U.S. District Court for the Northern District of California, and is currently seeking class action status. Law firm Hagens Berman is handling the case, having previously won a suit against Apple in 2016 over the company's approach to e-book pricing.

“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, the attorney representing the proposed class of developers. 

"In a competitive landscape, this simply would not happen. We think app developers should be rewarded fairly for their creations, not over-taxed by a corporate giant. After 11 years of monopoly conduct and profits, we think it’s high time that a court examine Apple’s practices on behalf of iOS app developers and take action as warranted by the law and facts."

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