Apple's bid to dismiss a lawsuit valued at nearly $1 billion was rejected on Friday, with a judge ruling it must face allegations it charged more than 1,500 UK-based developers unfair commission fees on purchases of apps and other content.
Sean Ennis, a competition law professor and economist, is
spearheading the case, which was filed at London's Competition Appeal Tribunal
(CAT) last year and alleges Apple charged developers unfair commissions of up
to 30%.
Lawyers for Ennis say the U.S. tech giant abused its
dominant position in the market for the distribution of apps on iPhones and
other Apple devices and are seeking damages.
Apple has faced mounting pressure from regulators in the
U.S. and Europe over the fees it charges third-party developers distributing
apps via the App Store. The company says 85% of developers on its App Store do
not pay any commission at all.
In the European Union, new laws have forced Apple to allow
users to download apps from rival sources, including websites and alternative
app stores. Meanwhile in the U.S., it made changes to its App Store following a
long-running legal battle with Epic Games, the company behind
"Fortnite".
Apple's lawyer Daniel Piccinin argued at a hearing in
January that developers cannot have a claim in the UK unless they were charged
on purchases made through the UK App Store.
But Apple's bid to throw out that part of the case was
rejected by Judge Andrew Lenon in a written ruling on Friday.
Lenon said that Ennis' lawyers had a realistic prospect of
establishing that "Apple's overcharging of commission to app developers
based in the UK in relation to commerce transacted on non-UK storefronts did
amount to conduct implemented in the UK".
Apple is also facing a separate case over allegedly
defective iPhone batteries on behalf of around 24 million iPhone users, which
was certified last year.
The company is contesting both cases, which are not expected
to come to trial before 2025.