Apple has to face $1 billion lawsuit in court in the UK

Apple has tried and failed to dismiss a lawsuit in the UK worth nearly $1 billion, brought against the company by 1,500 UK-based developers. A UK court ruled earlier today that the case can be brought and will thus proceed to trial – although that action is likely to be taken next year.

The lawsuit alleges that Apple charges developers unfair commission fees of up to 30% for purchasing apps and other content. The plaintiffs allege that Apple is abusing its dominant market position by distributing apps on the iPhone and other Apple devices and thus seek damages.

Interestingly, Apple’s lawyers argued at a hearing in January that developers could not make claims in the UK unless they were charged for purchases made through the UK App Store. The judge disagreed, stating that “commission surcharges on non-UK storefronts for commercial transactions from UK-based app developers are enforceable in the UK”.

But this is not the first time Apple has faced such allegations. In the EU, companies are now forced to allow alternative app stores and allow developers to charge for things outside the app store if they want.

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