Dive Brief:
- An app developer filed a lawsuit against Apple that seeks class-action status, alleging that the company’s efforts to avoid complying with a federal court injunction cost developers money. The new lawsuit was filed by Pure Sweat Basketball, which offers basketball training online and through its apps.
- Only 34 of an estimated 136,000 app developers in Apple’s App Store had applied to offer external payments via links as of May 2024, according to Pure Sweat’s lawsuit, filed Friday in federal court in Oakland, California.
- Separately, Apple filed notice Monday that it will appeal U.S. District Court Judge Yvonne Gonzalez Rogers’ April 29 ruling that it violated an injunction Fortnite video game maker Epic Games secured in a legal battle over commissions the technology giant charges for app purchases. Apple previously appealed Rogers’ 2021 ruling to grant the injunction.
Dive Insight:
Rogers ruled last week that Apple had not complied with her 2021 injunction stemming from Epic Games’ lawsuit, and had continued to seek ways to protect revenues it collects by taking a portion of app sales on its platform. Apple also schemed to dissuade app users from clicking external payment links, Rogers said.
Pure Sweat alleged Apple had rejected its 2023 app until the developer removed links allowing external purchases.
Given Rogers’ ruling, Pure Sweat, based in Crystal Lake, Illinois, plans to modify its apps to include linked-out purchases on its own platforms and avoid Apple’s fees, the lawsuit said.
“Apple’s contempt is far from a victimless offense,” according to the lawsuit, which was filed in the same court where the Epic Games’ litigation is occurring. “In addition to undermining the judicial process, Apple’s defiance of the Injunction has harmed Apple’s developers.”
The new lawsuit closely mirrors Rogers’ latest ruling that described Apple’s actions.
The law firm representing the plaintiffs, Hagens Berman Sobol Shapiro, estimated that “potentially more than 100,000” app developers were unable to sell directly to customers “and were forced to pay Apple commissions on in-app sales that Apple was not entitled to receive,” the Seattle-based law firm said Friday in a press release.
“While the Injunction was designed to encourage link-out payments, which would substantially reduce the commissions developers pay to Apple, Apple’s Injunction defying scheme ensured this did not happen—not even remotely,” according to the lawsuit.
The suit alleges unjust enrichment, constructive trust and tortious interference with business and seeks unspecified damages for Pure Sweat and other similar plaintiffs.
Hagens Berman previously sued Apple in 2019 related to its App Store payment policies. That case resulted in a $100 million settlement the firm secured in 2021 for app developers.
