Will the App Store business model survive? As a reminder, on its app store, the Cupertino company charges a commission of 30% (or sometimes 15%) on transactions between users and app developers, for purchases in applications and for subscriptions. .
This commission is increasingly contested and is a source of conflict between the Cupertino company and certain developers. It is also this commission which is at the origin of the legal battle opposingApple at Epic,the video game developerFortnite, in the United States.
And this week, we learn that Apple will also have to defend itself in British justice. Indeed, across the Channel, the firm is being sued by Rachael Kent, lecturer in digital economics.
As reported in a Daily Mail article, the Competition Appeal Tribunal, based in London, rejected an attempt by Apple to limit this class action complaint which was filed in 2021. Thus, Apple will face a full trial in the United Kingdom.
“This is great news for App Store users in the UK. I applaud the Competition Appeal Tribunal for this clear and well-considered decision”, rejoices Rachael Kent.
“At a hearing in May 2022, Apple attempted to argue that the aspect of Dr. Kent's claim which alleges that Apple's 30% commission is unfair and excessive should not be allowed, on the grounds that Dr. Kent had applied the wrong legal test and his claim was therefore defective. But in a judgment issued this week, the Court rejected all of Apple's arguments and, in doing so, rejected Apple's attempt to limit Dr. Kent's claim., we can also read in a press release from the firm Hausfeld & Co LLP, which represents Rachael Kent.
Will Apple have to pay compensation?
If Rachael Kent wins this lawsuit, Apple could be ordered to pay damages to people residing in the United Kingdom who made purchases on the App Store and who therefore indirectly paid this 30% commission to the Cupertino company.
The complaint estimates that these damages could amount to 1.5 billion pounds, or more than 1.7 billion euros. According to Hausfeld & Co LLP, any iPhone or iPad user in the UK who has made purchases for paid apps, in-app purchases or paid for a paid subscription on the App Store since October 1, 2015 may be included in the class action and may be compensated in the event of victory.
Otherwise, as a reminder, Google also charges commissions on its Google Play Store. However, on Android, users have the possibility of installing apps without going through this official store, in order to bypass these commissions.
Currently, developers are campaigning for Apple to take inspiration from Google and allow users to install apps outside the App Store. To counter these demands, the Cupertino company regularly discusses security, explaining that allowing apps that have not been verified by the App Store process could allow malware to enter the iPhone.
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By : Keleops AG
