A Dutch foundation has sued Apple over App Store developer fees, demanding €5.5 billion in damages for allegedly monopolistic behavior. In a press release, the Dutch Consumer Competition Claims Foundation announced that it is filing a “class action” claim for damages on behalf of any iPhone or iPad owner in the EU who has downloaded a paid app or made a purchase within an app.
Suing Apple over its App Store policies on behalf of consumers – rather than developers – may seem like an unusual move by the Dutch foundation. Most research into the tech giant’s so-called “Apple Tax” has focused on its damaging impact on developer profits. Just last January, Apple agreed to settle a $100 million class action lawsuit brought by US developers.
The Consumer Competition Claims Foundation claims Apple’s developer fees were passed on to consumers in the form of higher prices. “App developers are being forced to pass on to consumers the increased costs caused by Apple’s monopolistic practices and unfair terms,” the foundation writes in its press release.
The Foundation is asking EU consumers who have purchased an app from Apple’s App Store or made an in-app purchase since September 2009 to join their complaint. The lawsuit is to be filed with the District Court of Amsterdam.
This isn’t the first time Apple has been pressured by Dutch authorities. Apple has yet to comply with a January order from Dutch regulators requiring the company to offer third-party payment options for dating app customers. The Dutch Authority for Consumers and Markets (ACM) fines Apple 5 million euros for each week it doesn’t carry out the order. Dutch regulators have already fined Apple more than €50 million and counting.
But according to TechCrunch, there are signs of a potential compromise. Apple is working on an amended proposal to its dating app policy, which is being reviewed by ACM. But even if the two parties reach a consensus, Apple will soon have to fight much bigger battles in the EU. The EU is finalizing the Digital Markets Act, which (among a host of other anti-competitive measures) will require companies like Apple and Google to allow alternatives to in-app payments.
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