Apple Hit With Multibillion-Euro Lawsuit for 'Overcharging' App Store Users

Apple is facing a new multibillion-euro lawsuit out of The Netherlands that alleges the company overcharges users who purchase apps and in-app subscriptions through the App Store and accuses Apple of partaking in "market dominance" and "anti-competitive practices."

iOS App Store General Feature Dock
The foundation spearheading the lawsuit is the Consumer Competition Claims Foundation, which describes itself as "an independent non-profit foundation that is committed to protecting consumers against unfair commercial practices and violations of consumer law."

On its website, the foundation says that Apple, through its ‌App Store‌ policies, is overcharging users who pay for apps and in-app services, adding that users should "demand" refunds for purchases.

By using anti-competitive practices, Apple has been able to charge excessively high prices and impose restrictive conditions. Apple excluded all competition and withheld choice for consumers on their App-store and in-app purchases.

The foundation points to what is commonly referred to as the "Apple tax," a 15% or 30% commission that Apple takes for all digital purchases made on and through the ‌App Store‌. The foundation says that the commission forces developers to increase prices for users. "iPhone and iPad owners pay the price for Apple's App-store abusive monopoly," the foundation states.

Bloomberg reports the foundation believes the lawsuit will lead to upwards of $5.5 billion in damages sought for all EU ‌iPhone‌ and ‌iPad‌ users who have made a purchase through Apple's ‌App Store‌. On its website, the foundation asks customers to join their efforts to "hold Apple accountable."

The new lawsuit is one of several legal battles brewing for Apple in Europe. Apple continues to be fined by the Dutch consumer and markets authority for its failure to comply with a previous ruling, which allows for third-party payment methods for Dutch dating apps. The authority says that despite Apple's announcement and plan to let eligible developers use a third-party payment method for in-app purchases, Apple still fails to comply with the new ruling. Apple has been fined €50 million as a consequence.

Top Rated Comments

Steve121178 Avatar
26 months ago
No one is forced to buy anything. Those that buy must be clearly happy with the price or why would they choose to make a purchase?
Score: 39 Votes (Like | Disagree)
cupcakes2000 Avatar
26 months ago

Quick question, are you happy with your utility prices?

A lot of people buying gas and diesel might differ on that point.
Far cry from the dev charging 99p instead of 70p for a flappy birds app- don’t you think? No one is forced to buy anything from the App Store or from Apple itself. No one is forced to buy an iPhone. And Apple should not be forced to give away anything. It’s business - suck it up.
Score: 38 Votes (Like | Disagree)
yellow8 Avatar
26 months ago
I'm happy as a developer and my customers are happy. Isn't it the most important?
Score: 34 Votes (Like | Disagree)
yabeweb Avatar
26 months ago

Quick question, are you happy with your utility prices?
Well isn't that different? One is a "must have" the other one is not.



A lot of people buying gas and diesel might differ on that point.
See above, you need gas, to go to work and grocery shopping, do you really need a game / app?

EDIT:
Love the downvoters, like they really think Utility and Gas are as important / needed as Apps :D.

I would pay for all your apps if you staied 1 week without light /phone / gas / heater / air conditioner using a car and so on :D
Score: 29 Votes (Like | Disagree)
Aidoneus Avatar
26 months ago
Are there any examples of app prices coming down with Apple’s cut being reduced to 15%?

If not, I’m not sure this lawsuit makes much sense.
Score: 26 Votes (Like | Disagree)
ct2k7 Avatar
26 months ago

No one is forced to buy anything. Those that buy must be clearly happy with the price or why would they choose to make a purchase?
Quick question, are you happy with your utility prices?
Score: 24 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...
M3 iPad Feature 3

New iPads Likely to Begin Shipping in April

Monday March 18, 2024 9:52 am PDT by
Apple's new iPad Pro models with OLED displays will likely begin shipping to customers in April, according to information shared today by Ross Young, CEO of display industry research firm Display Supply Chain Consultants. Bloomberg's Mark Gurman also said the new iPad Pro models might not ship until "deeper" into April in his Power On newsletter on Sunday:I've repeatedly said that new...