Apple Faces Developer Lawsuit After Defying App Store Injunction
Apple is being sued by developers unhappy with the company's "willful violation" of the anti-steering injunction the court ordered as part of its legal battle with Epic Games. A company called Pure Sweat Basketball has teamed up with law firm Hagens Berman to file a class-action lawsuit against Apple in an attempt to win some money for developers.
The lawsuit focuses on the recent Apple vs. Epic Games decision where Apple was found to be in contempt of court. Back in 2021, Apple was ordered to relax its anti-steering rules that prevent developers from directing customers to purchase options outside of the App Store. Because of appeals, Apple didn't have to comply until January 17, 2024, but when it did, Apple did so in a way that the court said was anticompetitive.
Apple forced developers to pay between 12 and 27 percent in commission when customers made a purchase through an app using an external payment link, which was an issue because developers also had to pay payment processors. Apple also had strict rules allowing only a single link and it used scare screens to try to prevent customers from making purchases outside of the App Store.
Apple last week was forced to change its U.S. App Store policies to support external payment links in apps with no restrictions, a decision that Apple is appealing, but the class action lawsuit argues that developers should be compensated for the trouble. It claims that Apple's moves to circumvent the injunction cost developers "billions of dollars" in revenue.
Due to Apple's anti-steering implementation, only 34 developers of 136,000 took advantage of the external payment link option before the terms were changed last week, and the lawsuit is seeking restitution for all U.S. developers who offered in-app purchases for non-zero prices between January 17, 2024 and when Apple fully complied with the original injunction.
Apple should be forced to disgorge all of its "ill-gotten gains," according to the lawsuit. The law firm that's handling the case, Hagens Berman, previously secured a $100 million settlement for developers over Apple's App Store fees.
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