Apple’s 30% App Store fee has always been a subject of widespread debate, particularly because the company does not allow users to side-load apps like Android. And although the European Union’s Digital Markets Act (DMA) has mandated Apple to allow sideloading in the 27 EU member states from March 6th, 2024, over 1500 app developers have reportedly filed a class action lawsuit against Apple, alleging that the company’s App Store commission fees are exorbitant and a consequence of its monopolistic control over the app distribution platform.
Leading the lawsuit is Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia, who argues that the company’s significant commission fees, ranging from 15% to 30%, have severely hampered business for many developers. As a result, the lawsuit is seeking $1 billion in damages.
“Apple’s charges to app developers are excessive and only possible due to its monopoly on the distribution of apps onto iPhones and iPads. The charges are unfair in their own right and constitute abusive pricing. They harm app developers and also app buyers,” said Ennis.
While Ennis takes the class action lawsuit to the UK Competition Appeal Tribunal, with the support of the law firm Geradin Partners, various organizations and governments have long contested Apple’s fee structure. And despite a $100 million lawsuit last year prompting the company to implement several changes, such as removing the $100 developer fees and introducing the Small Business Program to alleviate the burden on smaller developers, many big studios still have to pay a significant cut.
Side-loading could be the answer
Although the outcome of the lawsuit remains uncertain, considering a similar case in a U.S. court ruled in favor of Apple, the EU’s mandate for Apple to allow sideloading might help developers circumvent the fees. This ruling not only promises to benefit developers by boosting their profit margins, but it could also lead to lower prices for consumers in the long run.