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Apple Sued by French App Developers for Overcharging App Store Fee

Apple has been accused of abusing its monopoly power over app distribution on iOS-based mobile devices.

Apple Sued by French App Developers for Overcharging App Store Fee

Photo Credit: Reuters

Apple has been accused of violating federal antitrust law and California state laws

Highlights
  • Apple had to make $100 million settlement last year in a similar case
  • It charged 30 percent commission for 14 years, $99 annual fees
  • Société du Figaro, L'Équipe 24/24, Le Geste filed class action lawsuit

Apple was sued on Monday by French app developers that accused the iPhone maker of violating US antitrust law by overcharging them to use its app store.

The plaintiffs in the proposed class action include Société du Figaro, which develops the Figaro news app; L'Équipe 24/24, which develops the L'Équipe sports news and streaming app, and Le Geste, an association of French content providers.

According to the complaint filed in the federal court in Oakland, California, Apple has abused its monopoly power over app distribution on iOS-based mobile devices by mandating only one app store for those devices.

The plaintiffs said this has enabled the Cupertino, California-based company to charge "supracompetitive" 30 percent commissions for 14 years, as well as $99 (roughly Rs. 8,000) annual fees to app developers, while stifling innovation and consumer choice.

"There is no valid business necessity or pro-competitive justification for Apple's conduct," the complaint said. "Instead, Apple's actions are designed to destroy competition."

Apple did not immediately respond to requests for comment.

Monday's complaint seeks an injunction against further anticompetitive conduct, plus triple damages for violating federal antitrust law and California state laws.

The plaintiffs are represented by the US law firm Hagens Berman Sobol Shapiro, and Paris-based Fayrouze Masmi-Dazi.

Monday's lawsuit resembles an earlier Hagens Berman case against Apple, which resulted last August in a $100 million (roughly Rs. 800 crore) settlement for smaller iOS developers that called Apple's commissions excessive.

In June, the firm reached a $90 million (roughly Rs. 700 crore) settlement with Alphabet's Google over its app store's treatment of developers.

The case is Société du Figaro et al v Apple Inc, US District Court, Northern District of California, No. 22-04437.

© Thomson Reuters 2022


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