Apple and Google have been hit by a class action lawsuit in Portugal, the lawsuit accusing their 30% application market commission rate is “anti-competitive and excessive”. The lawsuit alleges Apple and Google “systematically violated competition law” by overcharging Portuguese clients, according to the Hausfeld law firm representing the case.
Litigant Professor Fabrizio Esposito wants to act as a class representative for as many as 2.9 million Apple App Store users and 3.6 million Google Play Store users in seeking damages for anyone who purchases apps or in-app content on the Portuguese App Store and Google Play Store, which the professor filed a claim with the Portuguese Competition Tribunal for 100 million euros.
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The lawsuit alleges that the 30 percent cut on apps and in-app purchases on the App Store and Play Store is anti-competitive and increases the fees consumers pay. Also, if the two tech giants are able to charge these fees because they impose technical and contractual restrictions on other app stores.
Partner attorney Lesley Hannah said: “This is the latest in a series of claims and regulatory investigations into the two tech giants, who are accused of violating competition law by charging a 30 percent fee on all app purchases, app content, and subscriptions. Commissions, which bring in a lot and a steady stream of profits.”
Moreover, this is not the first time that Apple’s 30% cut in a consumer-led lawsuit is anti-competitive. Apple has previously faced similar pending lawsuits in the United States, the United Kingdom, the Netherlands, and other countries. According to Appleinsider, Apple is also facing antitrust scrutiny from the government and regulators, which could change Apple’s business model in the future.
Both Apple and Google have also introduced lower commission rates in recent years, such as Apple’s 15% cut for developers who make less than $1 million from the App Store. Then Google followed up with this policy: developers with an annual income of $1 million take a 15% cut and only 30% for the excess.
