Why thousands of app developers are suing Apple
What's the story
Apple is staring at a proposed class action lawsuit, filed by app developer Pure Sweat Basketball, in a federal court in Oakland, California. The lawsuit accuses the tech giant of defying a US judge's order concerning its App Store operations. This alleged defiance has reportedly forced developers to pay inflated commissions for over a year. Pure Sweat's lawsuit represents up to 100,000 developers who claim they have been adversely affected by Apple's actions.
Claims
Allegations of financial misconduct
The lawsuit claims Apple's actions have caused "hundreds of millions or even billions" of dollars in damages to the developers. The legal complaint reads, "Apple should be made to disgorge its wrongful profit, and developers are entitled to be made whole." This lawsuit comes after US District Judge Yvonne Gonzalez Rogers ruled on April 30 that Apple had intentionally violated her injunction in a separate Epic Games case.
Details
Apple's alleged violation of injunction
The 2021 injunction aimed to give developers more leeway to guide consumers toward potentially cheaper purchases outside Apple's App Store. However, as per the lawsuit, Apple reportedly levied a new 27% fee on developers when customers made an app purchase outside the App Store. This fee was introduced after the injunction came into effect in January 2024.
Restrictions
Allegations of blocking developers
The lawsuit also accuses Apple of blocking Pure Sweat Basketball in 2023 from publishing an app with links to purchase content outside of the app. The complaint alleges that "Apple schemed to maintain the status quo, as if no injunction had entered, retaining its billion dollar in-app payments revenue stream while depriving developers of the intended fruits of the injunction." This accusation further underscores the serious nature of the allegations against Apple.
Legal battles
Apple's response and ongoing legal challenges
Apple has denied violating Judge Rogers's order and filed a notice of appeal. The company is also facing other consumer and government lawsuits challenging its business practices. In one such case, Hagens Berman is representing consumers accusing Apple of illegally monopolizing the smartphone market. These ongoing legal challenges highlight the scrutiny Apple continues to face over its business practices.