App developers sue Apple over alleged anti-competitive practices

Apple Headquarters
Source: Apple

Two app developers filed a lawsuit against Apple (NASDAQ: AAPL) alleging that the tech giant engaged in anti-competitive practices related to its App Store.

The plaintiffs, Donald R. Cameron of California and Pure Sweat Basketball of Illinois claimed that Apple is monopolizing app distribution citing the reason that consumers can only download iPhone apps through its official App Store.

In addition, the plaintiffs claimed that Apple is charging app developers a $99 yearly fee and 30 percent commission on the sale of apps. The iPhone maker allegedly dictates how app developers should price their apps.

“This practice is analogous to a monopsonist retailer paying artificially low wholesale prices to its suppliers. “In both paradigms a competitive market would yield better post-commission or wholesale prices, and fairer profit, for developers’ digital products,” according to the app developers in their complaint.

App developers echoed consumers’ arguments in a similar lawsuit against Apple

Their allegations against Apple are similar to those highlighted in the antitrust complaint filed by consumers, who argued that that tech giant is taking excessive commission from app developers. Its practice artificially inflated the prices of iPhone apps. Consumers claimed they were overcharged for iPhone apps, which they can only purchase through the company’s App Store.