Developers filed a lawsuit in California against Apple Tuesday. They claimed that Apple has a monopoly over app distribution because all apps have to go through the App Store. Apple then takes a cut of any sales.
Fighting the App Store Apple Tax
The developers that sued Apple are Pure Sweat Basketball and Donald Cameron (via Wall Street Journal). Their attorney Steve Berman, a managing partner at Hagens Berman, said:
Apple blatantly abuses its market power to the detriment of developers, who are forced to use the only platform available to them to sell their iOS app.
Apple takes 30% commission in the first year an app is available in the App Store. This drops to 15% after the first year.
Claims Apple Restricts Price
The lawsuit also alleged that Apple restricts pricing in the App Store. The complaint said that Apple “dictates minimum and greater price points, which prevent developers from offering paid products at less than $.99”. The also said are unable to offer products “at price points ending in anything other than $.99.”
“From the outset, Apple attained monopoly power in the U.S. market for iOS app and in-app product distribution services by slamming the door shut on any and all potential competitors,” the complaint added (via Bloomberg News).
The developers who filed the App Store complaint want to expand the case and represent a nationwide class. Apple made no public comment about the ongoing case.