UK case against Apple: money back for over-commissioned apps

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uk case against apple money back for over commissioned apps
uk case against apple money back for over commissioned apps

Apple is being sued in Great Britain for allegedly overcharging consumers for apps purchased.

The plaintiffs, led by a professor at King’s College in London, believe the 30 percent commission Apple charges app makers to be “lavish” and “illegal.” Users of iPhones and iPads should therefore be compensated.

According to professor Rachael Kent, who specializes in dealing between consumers and digital platforms, Apple is abusing its market power with the demands placed on software companies. “That, in turn, has negative consequences for British consumers.” According to the indictment, some 20 million British Apple customers have been disadvantaged by Apple.

Apple says the claim is unfounded. The company says it stands for consumers and has created a lot of value with the App Store, also for the British economy. Furthermore, 84 percent of app developers would not pay anything because their apps are free.

Apple recently lowered rates  to 15 percent for app makers who have $ 1 million or less in sales per year in the App Store.

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The new lawsuit follows after Apple has increasingly come under fire over its App Store policies. In the US, the iPhone manufacturer is defending allegations by Fortnite maker Epic Games that Apple manages its App Store as a monopolist. According to Epic, Apple has too much power and is making unjustified demands.

The European Commission also recently concluded in a preliminary conclusion that Apple has abused its market power to disadvantage other music streaming services compared to its own Apple Music service.

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