appstorelogocleanApple 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, managing partner of Hagens Berman and attorney representing the proposed class of developers. "In a competitive landscape, this simply would not happen."

"Today's lawsuit seeks to force Apple to end its abusive monopoly and allow competition in the distribution of iOS apps and related products, to get rid of its pricing mandates, and to reimburse developers for overcharges made through abuse of its monopoly power."

"We think app developers should be rewarded fairly for their creations, not over-taxed by a corporate giant," Berman said. "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."

Hagens Berman won a suit against Apple and various publishing companies in 2016 that settled for a total of $560 million on behalf of e-book purchasers, who said they were forced to pay "artificially high prices due to Apple and the publishing companies' colluded price-fixing." That suit went to the Supreme Court, where the Court ruled against Apple.

The latest class action accuses Apple of violating federal antitrust law and California's unfair competition law.

Top Rated Comments

BWhaler Avatar
73 months ago
This is idiotic. Every store front charges a percent of sale price. It’s how retail works. If Walmart is the only supermarket in town, a common situation nowadays, are they forbidden for taking a percent of sale?

I like the $99 fee. If it was free, there would be endless junkware in the App Store...and there is quite a bit today showing how low of a barrier 99 bucks is.
Score: 22 Votes (Like | Disagree)
DaveP Avatar
73 months ago
In my opinion a 30% fee is not enough! It is apple’s store they can charge whatever they want. I’d double the fee to 60% until developers learn that it’s a privilege to be able to make apps for apple
Boy, I hope you are kidding. I don't know where you work, but your salary should decrease until you learn it's a privilege to work there.
Score: 16 Votes (Like | Disagree)
PS8409 Avatar
73 months ago
Abusive monopoly? They haven’t done anything wrong. They’re very clear what prices they’re going to charge you. It’s like going to McDonald’s and ordering a Big Mac for $4 and getting mad at them for charging you sales tax.
Score: 15 Votes (Like | Disagree)
MadDawg2020 Avatar
73 months ago
Do Developers realize Apple pays to build, host and maintain a worldwide network of servers; Apple pays to write, maintain and distribute the SKD’s and other tools Developers use to create apps; Apple pays write, maintain and distribute the OS’s used worldwide that run all the Apps developers write.

So Developers, just expect Apple to do all these things for free?!
Score: 11 Votes (Like | Disagree)
mm1250 Avatar
73 months ago
I agree with the lawsuit.

Just like macOS and ms windows. If your not allowing apps to be installed outside your App Store than your creating a monopoly that forces everyone to go through you to install apps on their phones. Hence creating an increase in price to the consumer.
Score: 10 Votes (Like | Disagree)
maerz001 Avatar
73 months ago
In my opinion a 30% fee is not enough! It is apple’s store they can charge whatever they want. I’d double the fee to 60% until developers learn that it’s a privilege to be able to make apps for apple
Come on. The iphone lives also from non apple apps. Its a win win.
If all app developers would pull their apps at the same time the iphone would be dead
Score: 7 Votes (Like | Disagree)

Popular Stories

New Things Your iPhone Can Do in iOS 18

20 New Things Your iPhone Can Do in iOS 18.2

Monday December 16, 2024 8:55 am PST by
Apple released iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. Apple has added a handful of new non-AI related feature controls as...
iphone 16 apple intelligence

Apple Drops Plans for iPhone Hardware Subscription Service

Wednesday December 18, 2024 11:39 am PST by
Apple is no longer planning to launch a hardware subscription service that would let customers "subscribe" to get a new iPhone each year, reports Bloomberg's Mark Gurman. Gurman first shared rumors about Apple's work on a hardware subscription service back in 2022, and at the time, he said that Apple wanted to develop a simple system that would allow customers to pay a monthly fee to gain...
iPhone 17 Pro Dual Tone Feature 1

iPhone 17 Pro Rumored to Stick With 'Triangular' Camera Design

Wednesday December 18, 2024 2:36 am PST by
Contrary to recent reports, the iPhone 17 Pro will not feature a horizontal camera layout, according to the leaker known as "Instant Digital." In a new post on Weibo, the leaker said that a source has confirmed that while the appearance of the back of the iPhone 17 Pro has indeed changed, the layout of the three cameras is "still triangular," rather than the "horizontal bar spread on the...
elevation lab airtag battery

Your AirTag's Battery Will Last for Up to 10 Years With Elevation Lab's New TimeCapsule Enclosure

Wednesday December 18, 2024 10:05 am PST by
Elevation Lab today announced the launch of TimeCapsule, an innovative and simple solution for increasing the battery life of Apple's AirTag. Priced at $20, TimeCapsule is an AirTag enclosure that houses two AA batteries that offer 14x more battery capacity than the CR2032 battery that the AirTag runs on. It works by attaching the AirTag's upper housing to the built-in custom contact in the...
apple tv 4k yellow bg feature

New Apple TV Rumored to Launch Next Year With These Features

Tuesday December 17, 2024 9:02 am PST by
The current Apple TV 4K was released more than two years ago, so the streaming device is becoming due for a hardware upgrade soon. Fortunately, it was recently rumored that a new Apple TV will launch at some point next year. Below, we recap rumors about the next-generation Apple TV. Bloomberg's Mark Gurman last week reported that Apple has been working on its own combined Wi-Fi and...
blackmagic vision pro

Blackmagic Debuts $30K 3D Camera for Capturing Video for Vision Pro

Monday December 16, 2024 4:17 pm PST by
Blackmagic today announced that its URSA Cine Immersive camera is now available for pre-order, with deliveries set to start late in the first quarter of 2025. Blackmagic says that this is the world's first commercial camera system designed to capture 3D content for the Vision Pro. The URSA Cine Immersive camera was first introduced in June, but it has not been available for purchase until...
mac pro creativity

Apple Launched the Controversial 'Trashcan' Mac Pro 11 Years Ago Today

Thursday December 19, 2024 7:00 pm PST by
Apple launched the controversial "trashcan" Mac Pro eleven years ago today, introducing one of its most criticized designs that persisted through a period of widespread discontentment with the Mac lineup. The redesign took the Mac Pro in an entirely new direction, spearheaded by a polished aluminum cylindrical design that became unofficially dubbed the "trashcan" in the Mac community. All of ...
iPhone 17 Slim Feature

'iPhone 17 Air' With 'Major' Design Changes and 19-Inch MacBook Detailed in New Report

Sunday December 15, 2024 9:47 am PST by
Apple is planning a series of "major design" and "format changes" for iPhones over the next few years, according to The Wall Street Journal's Aaron Tilley and Yang Jie. The paywalled report published today corroborated the widely-rumored "iPhone 17 Air" with an "ultrathin" design that is thinner than current iPhone models. The report did not mention a specific measurement, but previous...