A massive class action lawsuit filed against Apple could see millions of App Store customers share a payout in a case worth “billions of dollars.”
A class action lawsuit first filed back in March 2022 has finally been approved by the same judge that oversaw the Apple vs Epic Games Free Fortnite saga, after the class was narrowed to include only Apple account holders who had spent more than $10 on its App Store.
As reported by Reuters, Apple is being sued in the Northern District of California over claims that Apple has a monopoly on iOS App Store distribution because of its ban on purchases outside the App Store, forcing customers to pay higher prices.
Class Action App Store lawsuit goes ahead
As the report notes, the news means “tens of millions” of App Store customers can pursue Apple. A lawyer for the consumers reckons “billions of dollars in damages” were incurred by the class. While this case is being overseen by the judge from the Epic Games trial and echoes many of the complaints of more recent concerns raised by regulators and bodies, including the EU, it is in fact 12 years old, showing just how long some have been trying to decry Apple’s iOS business model.
Next month, Apple will introduce changes to its iOS App Store in the EU in iOS 17 that will allow developers to distribute their apps via alternative third-party app stores while processing payments outside Apple’s in-app payment system. While it is, in theory, the change many have been looking for, pretty strict rules and remaining fees mean not all developers are happy. Notably, big companies like Spotify have hit out against the measures because of Apple’s Core Technology fee, which will see apps downloaded from an alternative app marketplace pay a €0.50 fee for each first annual install per year (including app updates) over a 1 million threshold. While Apple says 99% of developers will reduce or maintain the fees they owe to the company, less than 1% may end up paying more than previously if they sign up for the new terms.
Spotify claims the new measures amount to “extortion” and mock the spirit of the DMA.
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