Oh Dear! Apple Facing Another Dodgy Company Claim, This Time For Overcharging
Apple who has already been fined billions for dodgy business practises is now facing a brand-new claim that the big iPhone maker overcharged nearly 20 million customers for App Store purchases.
Already facing court action on multiple continents claimants claim Apple’s 30% standard fee is “excessive” and “unlawful” the claimants said in a press release issued in the UK.The latest claim, filed at London’s Competition Appeal Tribunal last night , calls for the U.S. firm to compensate U.K. iPhone and iPad users for years of alleged overcharging.“Apple is abusing its dominance in the app store market, which in turn impacts U.K. consumers,” Rachael Kent, the lead claimant in the case and a professor at King’s College London. She teaches the ways in which consumers interact and depend upon digital platforms.
Apple who has a record of pushing out denial press statements and then losing court cases such as ‘Batterygate’ when they nobbled smartphones so that consumers would buy a new one has said the new action is “meritless,”.The UK court action comes as Apple defends their actions in a US court room Vs Epic Games who claims that Apple is running its marketplace like a monopoly, cheating developers, and consumers.Desperate to be seen as a “fair” Company Apple lowered its App Store fee to 15% from 30% for developers who produce as much as $1 million in annual revenue from their apps and those who are new to the store.
The latest legal challenges come as Apple faces a backlash — with billions of dollars in revenue on the line — from global regulators and some developers who say its fees and other policies are unjust and self-serving.
Late last month the European Commission sent a statement of objections to Apple, laying out how it thinks the big US Company abused its power as the “gatekeeper” for music-streaming apps on its store.
“The commission charged by the App Store is very much in the mainstream of those charged by all other digital marketplaces,” Apple claims.
“In fact, 84% of apps on the App Store are free and developers pay Apple nothing. And for the vast majority of developers who do pay Apple a commission because they are selling a digital good or service, they are eligible for a commission rate of 15%.”
The suit alleges that Apple deliberately shuts out potential competition and forces ordinary users to use its own payment processing system, generating unlawfully excessive levels of profit for the company.
The claimants say any user of an iPhone or iPad who purchased paid apps, subscriptions or made other in-app purchases since October 2015 is entitled to compensation. They estimate that Apple could face paying out in excess of 1.5 million pounds.