Breaking News

Apple Sued Over ‘Apple Tax’ in UK

Apple Sued Over 'Apple Tax' in UK

Apple’s attempt to dismiss a nearly $1 billion lawsuit brought by 1,500 UK-based developers was unsuccessful, as a UK court ruled today that the trial can proceed, likely next year.

The lawsuit alleges that Apple imposed unfairly high commission fees, up to 30%, on app and content purchases, known as the “Apple tax.” The developers argue that Apple is exploiting its dominant market position in app distribution on iPhones and other Apple devices, seeking damages as a result.

In a January hearing, Apple’s attorney argued that UK developers could not file a claim unless the charges were incurred through the UK App Store. However, the judge disagreed, stating that:

Also Read: Apple Warns Users in India and 91 Other Countries of Spyware Threat

“Apple’s overcharging of commission to app developers based in the UK in relation to commerce transacted on non-UK storefronts did amount to conduct implemented in the UK.”

This isn’t the first time Apple has faced such allegations. In the European Union, the company is now required to permit alternative app stores and allow developers to process payments outside of the App Store. This has led Apple to allow developers on the App Store to introduce their own payment methods outside of the store, circumventing the hefty Apple tax.

However, Apple still takes a cut from its developers in the form of commission, amounting to 12 to 27%, which is only a slight reduction from the original 15-30% format. Additionally, multiple tech giants including Microsoft, Meta, and X have criticized Apple, stating that it does not allow developers to include “even the most basic information” to inform customers about alternative payment methods. These developers are unable to properly inform customers that there are cheaper payment methods available on their websites.