The UK Competition Appeal Tribunal allowed the class action suit after dismissing Apple’s attempt to block the case. Credit: Kafka Ibram/Shutterstock.

Apple is facing a legal challenge seeking up to $995m in damages from British app developers regarding its App Store commissions.

The class action suit claims that Apple’s commission of up to 30% on App Store sales harmed competition in the UK tech industry.

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If successful, Apple may have to pay as many as 13,000 developers up to $995m in fees.

UK competition policy professor Sean Ennis, leading the suit, stated that Apple charged commission fees to UK-based app developers who sold their apps via the App Store or made sales to iOS device users through subscriptions within their apps since 25 July 2017.

The UK Competition Appeal Tribunal allowed the class action suit after dismissing the company’s attempt to block the case.

Apple had argued that developers could not have a claim against it in Great Britain unless they were charged fees on purchases made through its UK App Store.

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Ennis announced the suit last year, arguing that Apple’s commissions are “excessive” and result from the company’s monopoly on app distribution to its devices.

“The charges are unfair in their own right and constitute abusive pricing. They harm app developers and also app buyers,” Ennis added.

Apple countered that 85% of developers on its App Store do not pay a commission and that the company aids European developers in accessing global markets.

This class action suit is the latest instance of the company facing legal or regulatory scrutiny over its app-store fee policies.

In January 2024, Apple announced changes to the store to comply with European Union competition regulators. However, these changes are under scrutiny over concerns that Apple’s new terms may have worsened conditions for developers.

In a related development, Brazil’s competition regulator ordered Apple to remove its restrictions on payment methods for in-app purchases.

Cade, the Brazilian watchdog, will also investigate a complaint from Latin American eCommerce company MercadoLibre, which alleges that Apple has imposed restrictions on the distribution of digital goods and in-app purchases in Mexico and Brazil.

Apple is also facing a lawsuit filed by Amar Bhakta, a digital advertising employee, who accused the company of unlawfully monitoring personal devices and iCloud accounts.