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
34 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
34 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: 15 Votes (Like | Disagree)
PS8409 Avatar
34 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
34 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
34 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
34 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

ios 15

Apple Releases Minor iOS 15.2.1 and iPadOS 15.2.1 Updates

Wednesday January 12, 2022 10:05 am PST by
Apple today released minor 15.2.1 updates for iPhone and iPad users, and the software comes one month after Apple launched iOS 15.2 and iPadOS 15.2 with a slew of improvements. The iOS 15.2.1 and iPadOS 15.2.1 update can be downloaded for free and the software is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General >...
maxresdefault

Hands-On With LG's 32-Inch UltraFine OLED Pro Display

Wednesday January 12, 2022 1:12 pm PST by
LG in December announced the launch of its new 2022 32-inch UltraFine OLED Pro display, and in our latest YouTube video, we went hands-on with it to see how it compares to Apple's Pro Display XDR and whether it might be worth picking up depending on the price point. Subscribe to the MacRumors YouTube channel for more videos. Officially named the "32BP95E," the display features a resolution of ...
iPhone 14 Mock pill and hole

iPhone 14 Pro Now Rumored to Feature Both Pill-Shaped and Circular Cutouts

Wednesday January 12, 2022 9:26 am PST by
Apple is widely expected to remove the notch on iPhone 14 Pro models, but there have been conflicting rumors about the new design. Early rumors suggested that Apple would adopt a hole-punch design with Face ID somehow moved completely under the display, and later it was rumored that there would be a pill-shaped cutout instead. Now, display industry consultant Ross Young has claimed that...
AirPods Pro Gen 3 Mock Feature Red

AirPods Pro 2 Could Start a New Accessory Ecosystem

Friday January 14, 2022 2:34 am PST by
Apple's second-generation AirPods Pro could arrive alongside a new series of accessories, recent leaked images suggest. Alleged leaked photos of the next-generation AirPods Pro obtained by MacRumors showed a charging case with a metal loop on the side for attaching a strap. Apple has not used this design for any of its other AirPod models and it is unclear why it would be added in this...
iPhone 14 Mock Pill Blue Feature

iPhone 14 Pro Again Rumored to Feature Upgraded 48-Megapixel Camera

Wednesday January 12, 2022 6:18 am PST by
iPhone 14 Pro models will feature a 48-megapixel camera, according to Taiwanese research firm TrendForce. Specifically, this refers to the rear-facing Wide camera, which is currently 12 megapixels on iPhone 13 Pro models. The addition of a 48-megapixel Wide camera on iPhone 14 Pro models has already been mentioned by multiple sources, including analyst Ming-Chi Kuo, who expects the upgraded...
wordle

Clones of Popular 'Wordle' Game Flooding App Store, Including One Charging $30 Per Year [Updated]

Tuesday January 11, 2022 1:39 pm PST by
If you're a regular internet user you've probably heard of popular web-based daily guessing game Wordle, created by Josh Wardle. The game, which is entirely free to play, was introduced last fall and has been spreading like wildfire. Wordle asks players to guess a five letter word by identifying which letters are in the word and are located in the right location. Players get six guesses per...
apple employees trio

Apple Outlines $30M Bag Check Lawsuit Settlement on Legal Website

Wednesday January 12, 2022 3:28 pm PST by
Apple in November settled a long-running lawsuit over employee bag checks, with the Cupertino company agreeing to pay $29.9 million to employees who were subjected to off-the-clock bag searches, and now details about the settlement are available on Apple's website. California employees first sued Apple in 2013, and in 2015, the case escalated into a class action lawsuit. Employees claimed...
iMac 27 inch 2020 sale

Deals: Apple's 21.5-Inch iMac Hits Record Low Price of $599.99 ($499 Off) [Update: Out of Stock]

Thursday January 13, 2022 4:05 am PST by
Amazon today has a great deal on the 2017 Intel 21.5-inch iMac (2.3GHz, 8GB RAM, 256GB SSD), priced at $599.99, down from $1,099.00. This is the best price we've ever tracked on this model, and it's only available at Amazon. The sale price will be reflected after an automatic coupon is applied at checkout. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...