An Apple class action lawsuit brought by iOS app developers is joining the chorus of allegations that the tech giant is running a monopoly when it comes to iPhone apps.
Leading the charge is plaintiff Barry Sermons, an iOS app developer who claims that Apple has engaged in antitrust actions to maintain control over the marketplace for apps on its popular iPhone.
Apple’s App Store, introduced in 2008 and wildly popular ever since, generates billions for the company, says the plaintiff.
However, the tech giant has allegedly done so by locking iPhone owners into apps that can only be accessed through the store – creating a powerful monopoly.
“This lawsuit is brought by iOS app developers against Apple for the following anticompetitive practices: acquiring and maintaining a monopoly in the market for apps and in-app products developed for the Apple iOS operating system; refusing to allow other entities to distribute apps and related digital products to U.S. owners of its Apple iOS devices; and pricing requirements and mandates, including charging the same 30% supra-competitive commission on the sale of all paid apps and in-app purchases (since the App Store opened in 2008) and dictating minimum and greater price points that prevent developers from offering products for sale at lower prices,” states the Apple class action lawsuit.
The iOS developers are not the first to allege anticompetitive behavior by Apple. In May, the U.S. Supreme Court issued a ruling forcing the tech giant to address similar claims that iPhone users were required to pay higher prices because of Apple’s monopoly on apps.
To use an app, an Apple user must download it from the App Store, notes the Apple class action lawsuit, pointing out that there is no other way for a user to access apps on an iPhone, iPad, or other Apple device.
The App Store offers apps for a price or for free. Free apps often come with in-app purchases to generate revenue, says the complaint. Apple users spent an estimated $46.6 billion in 2018 in the App Store, notes the plaintiff.
“Apple has achieved such staggering growth and revenue because it designed its iOS operating system to lock its Apple iOS device users into buying applications only from the App Store,” contends the iOS developer’s class action lawsuit. “Applications created for other mobile devices not sold by Apple through its App Store will not work on Apple iOS devices.”
According to the complaint, despite rising earnings, Apple continues to maintain a vice-like grip on the iOS app market, driving earnings for developers ever lower.
The Apple class action lawsuit alleges that the tech giant changed policies in 2017, forcing developers to pay a fee for each app they wanted to put in Apple Store, rather than allowing them to use the same accounts.
“Apple’s monopolization has harmed developers,” alleges the plaintiff. “Apple’s anticompetitive conduct has caused developers to incur inflated fees, costs, and pricing for each app and in-app product developed for Apple’s iOS operating system; and harmed competition by reducing competitors’ ability to compete and incentive to innovate.”
The Apple class action lawsuit seeks to represent other iOS app developers who have continued to lose under the tech giant’s App Store requirement and related policies. The plaintiff is seeking a court order stopping the allegedly anticompetitive conduct by Apple, along with damages.
The plaintiff is represented by Alexander Saveri and Guido Saveri of Saveri & Saveri Inc., Kimberly A. Justice, Douglas A. Millen, Brian M. Hogan, and Jonathan M. Jagher of Freed Kanner London & Millen LLC, and Katrina Carroll and Gary Lynch of Carlson Lynch LLP.
The Apple Class Action Lawsuit is Sermons v. Apple Inc., Case No. 3:19-cv-03796, in the U.S. District Court for the Northern District of California, San Francisco Division.
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