A new multi-billion-euro lawsuit filed in the Netherlands claims Apple overcharges consumers who buy apps and in-app subscriptions through the App Store, accusing the corporation of “market domination” and “anti-competitive actions.”
The Consumer Competition Claims Foundation, which identifies itself as “an independent non-profit foundation dedicated to safeguarding consumers against unfair commercial practices and violations of consumer law,” is leading the action.
The organization claims on its website that Apple’s App Store policies overcharge consumers who pay for apps and in-app services and that users should “demand” refunds.
The foundation mentions the so-called “Apple tax,” which is a 15% to 30% charge that Apple collects on all digital sales made on and through the App Store. According to the organization, the commission forces developers to raise charges for customers.
The organization claims that “iPhone and iPad consumers pay the price for Apple’s oppressive App-store monopoly.”
According to Bloomberg, the foundation expects the lawsuit action to result in damages of up to $5.5 billion for all EU iPhone and iPad owners who purchased through Apple’s App Store. Customers are encouraged to join the foundation’s efforts to “keep Apple responsible” on its website.
Apple is now embroiled in a number of legal challenges in Europe. The Dutch consumer and market authorities have continued to punish Apple for failing to follow an earlier order allowing third-party payment methods for Dutch dating applications.
Despite Apple’s announcement and promise to allow eligible developers to use a third-party payment method for in-app purchases, the authority claims that Apple is still in violation of the new order. As a result, Apple received a fine of €50 million.
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News Source: MacRumors
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I’m Rajeev Sharma, Co-Founder and CEO of Markovate, an innovative digital product development firm with a focus on AI and Machine Learning. With over a decade in the field, I’ve led key projects for major players like AT&T and IBM, specializing in mobile app development, UX design, and end-to-end product creation. Armed with a Bachelor’s Degree in Computer Science and Scrum Alliance certifications, I continue to drive technological excellence in today’s fast-paced digital landscape.