Last week, a group of app developers filed a class action lawsuit against Apple.
This recent legal action is the latest development in a years-long fight that tech companies have been engaged in over how money is collected when customers make in-app purchases.
Because these transactions run through Apple, the company takes a 30% cut of in-app purchases from the developer. It also has a reputation for obstructing developer’s attempts to take payments outside of the app.
This was supposed to change because in 2021, a federal judge ordered the company to change its in-app purchase practices.
Tech expert Omar Gallaga has been following the legal proceedings and he joined the Standard with an update.
Highlights from this segment:
• The law firm Hagens Berman filed the lawsuit, naming Pure Sweat Basketball as the lead plaintiff. The suit alleges that Apple blocked the company from linking to a subscription page within its mobile app.
• In 2020 and 2021, Apple and Google reduced their 30% commission to 15%, respectively, but only for developers whose apps generate less than $1 million in annual revenue.
• Florida Rep. Kat Cammack introduced a bill called the App Store Freedom Act. According to Cammack, the bill would “allow users to set third-party apps or app stores as default; install apps or app stores outside of the dominant platform; and remove or hide pre-installed apps.”
