Tech giant Apple is urging the UK’s antitrust tribunal to dismiss a proposed £785 million ($996 million) class action by developers, arguing that the majority of App Store sales occur outside the UK. The company contends that the tribunal lacks jurisdiction to decide the case, emphasizing the need for the country of economic activity to determine regulations.
Apple $1B App Maker Charges Case : Apple’s Jurisdiction Battle
Daniel Piccinin KC of Brick Court Chambers, representing Apple, asserted that applying English competition law to charges abroad would make the UK the “competition enforcer of the world.” He argued that the market for applications is akin to the “brick and mortar” world of physical retail, highlighting the importance of local regulations in international commerce.
Abuse of Dominance Allegations
Norwich Business School professor Sean Ennis is leading the charge on behalf of over 1,500 UK app developers, alleging that Apple’s rules restricting direct app downloads or competing app stores on iPhones and iPads amount to an abuse of dominance. Ennis claims these rules enable Apple to maintain “excessive” commissions of up to 30% on apps and in-app purchases.
Apple $1B App Maker Charges Case : Domicile vs. Service Location
Piccinin contested the “fundamental flaw” in the claim, challenging the argument that English law should apply solely because developers are domiciled in the UK. He emphasized the importance of determining where the service is provided and where the market is, dismissing domicile as an irrelevant factor in regulating commerce.
Multinational Business Under Scrutiny
Paul Stanley KC of Essex Court Chambers, representing Ennis, countered that this case involves a multinational business operating in the UK and overcharging local businesses. He argued for the application of UK law to address Apple’s alleged abusive conduct toward UK developers.
Apple $1B App Maker Charges Case : The Battle Continues
This legal battle marks the latest chapter in Apple’s ongoing struggles over store charges. The Competition Appeal Tribunal previously ruled in June 2022 that a £1.5 billion consumer lawsuit targeting App Store commissions could proceed. In the US, Apple settled a $100 million lawsuit in 2021 with app developers, prompting revisions to App Store rules.
