App Developers File Class Action Against Apple Over In-App Purchase Restrictions

A significant legal development is underway as a group of app developers have filed a class action lawsuit against Apple, following a recent court ruling that found Apple violated a 2021 injunction related to mobile purchases.

The lawsuit, initiated on May 2, alleges that despite the injunction, Apple continued to prevent app developers from directing users to in-app purchases and subscriptions outside of Apple’s own ecosystem. This practice is seen as a means for Apple to maintain its 30% commission fee on in-app transactions, limiting developers’ ability to offer alternative purchasing options or better pricing directly to users.

This class action is part of a broader legal saga primarily involving Epic Games, the publisher of Fortnite, which has challenged Apple’s app store policies aggressively. Parallel legal disputes are also ongoing between Epic and other major tech companies like Samsung and Google over app storefront access and monetization rules.

The law firm Hagens Berman filed the suit, naming Pure Sweat Basketball, Inc. as the primary plaintiff. Pure Sweat Basketball offers a free app designed to improve basketball skills but was reportedly blocked by Apple from linking to a subscription page outside the app, restricting its revenue options.

According to Hagens Berman, over 100,000 app developers may have been similarly affected, forced to pay Apple commissions on in-app sales that the company arguably was not entitled to receive. This highlights the widespread impact of Apple’s restrictive policies on the developer community.

The controversy over app store commissions and control over in-app purchases has been ongoing for years. In 2020 and 2021, Apple and Google reduced their commission rates from 30% to 15% for developers earning less than $1 million annually. However, these changes have not resolved accusations of anticompetitive behavior, as Apple continues to restrict developers from steering users to external purchasing options.

Last week, a judge ruled that Apple violated the injunction and must comply immediately, signaling a potential shift in how app stores operate and how developers can monetize their apps. Apple has not yet responded publicly to the lawsuit.

Broader Implications for Developers and the Tech Industry

This legal challenge underscores the ongoing tension between app developers and platform owners over control, revenue sharing, and user experience. The outcome could reshape app store policies, potentially allowing developers more freedom to direct users to alternative payment methods and reduce dependency on platform fees.

For developers, this could mean increased profitability and flexibility in pricing and subscription models. For consumers, it might lead to more competitive pricing and diverse purchasing options within apps.

For Apple and other platform holders, the ruling and ongoing lawsuits represent a critical juncture in balancing control over their ecosystems with fair competition and developer relations.

As this legal saga unfolds, developers and industry stakeholders should closely monitor changes to app store policies and consider strategic adjustments to their monetization approaches.