A Dutch organization has filed a lawsuit against Apple over the App Store’s developer fees, claiming monopolistic behavior and seeking €5.5 billion in damages. The Dutch Consumer Competition Claims Foundation announced in a news release that it was submitting a “collective claim” for damages on behalf of all iPhone and iPad owners in the EU who have downloaded a paid app or made transactions within one.
Suing Apple on behalf of consumers, rather than developers, may appear to be an odd decision on the part of the Dutch foundation. The majority of the attention paid to Apple’s so-called “Apple tax” has been on its negative impact on developer profitability. Apple recently agreed to pay $100 million to resolve a class-action lawsuit brought by US developers.
Apple’s developer costs were allegedly passed on to customers in the form of higher prices, according to the Consumer Competition Claims Foundation. In a press release, the foundation stated, App developers are obliged to pass on to customers the increased prices generated by Apple’s monopolistic policies and unjust terms.
Since September 2009, the foundation has asked EU consumers who downloaded an app from Apple’s App Store or paid an in-app purchase to join its complaint. The complaint will be filed in the District Court of Amsterdam.
This isn’t the first time Apple has been chastised by the Dutch government. Apple has yet to comply with a Dutch regulator’s directive from January requiring the corporation to provide third-party payment choices to dating app users. Apple will be fined €5 million by the Netherlands Authority for Consumers and Markets (ACM) for each week it fails to comply with the directive. Apple has previously been penalized more than €50 million by Dutch officials.
There is, however, a glimmer of a possible compromise, according to TechCrunch. Apple is currently working on a revised proposal for its dating app rules, which ACM will consider. Even if the two parties strike an agreement, Apple will face even tougher struggles in the EU in the near future. The EU is working on finalizing the Digital Markets Act, which will oblige businesses like Apple and Google to enable alternatives for in-app payments, among other anti-competitive policies.
