UK App Developers Sue Apple Over Alleged In-App Payment System Monopoly

In 2019, Spotify filed a similar complaint against Apple with the European Commission.

Apple is being sued by a group of UK developers for allegedly monopolizing the in-app payment system on its devices and overcharging app developers. The lawsuit, filed at London’s Competition Appeal Tribunal on July 23, seeks nearly $1 billion in damages from the tech giant. The developers allege Apple takes a 30% cut, or "Apple Tax," on purchases made through its app store, including subscriptions and in-app purchases, making it difficult for developers to make a profit. The lawsuit claims that Apple is abusing its dominant position and violating UK competition law by setting conditions that app developers must follow and blocking alternate payment methods.

The plaintiffs argue that this has resulted in a less competitive environment and higher prices for consumers. This lawsuit follows similar lawsuits brought by developers in the US, Europe, and Australia against Apple. In 2019, Spotify filed a similar complaint against Apple with the European Commission. Epic Games, the creator of the popular game Fortnite, also filed a lawsuit against Apple in 2020 over the App Store’s monopoly on in-app payments. The lawsuit is expected to take several years to conclude and, if successful, could have significant implications for Apple’s App Store and the company's business model.