Class Action Lawsuit Filed Against Apple in Portugal Over App Commission Rates

BY Jeff

Published 29 Jul 2022

Apple and Google are at the forefront of a new class action lawsuit filed in Portugal. The complaint alleges that their 30% app marketplace commission rates are “anticompetitive and excessive.”

The class action suit, filed with the Portuguese Competition Court by Professor Fabrizio Esposito, seeks damages amounting to up to 100 million euros ($101.5 million). The claim alleges that Apple and Google have “systematically acted in contravention of competition law,” meaning both companies have been overcharging Portuguese customers.

Representing Esposito, Hausfeld law firm is acting as a class representative for up to 2.9 million Apple App Store users and 3.6 million Google Play Store users.

The class action suit alleges that the 30% commission Apple charges developers is anticompetitive and raises prices for consumers. Hausfeld also claims that if Apple didn’t implement technical and contractual restrictions, it would be unable to charge these commissions.

According to partner attorney Lesley Hannah, “This is the latest in a series of claims and regulatory investigations against the technology giants, who are accused of breaching competition law by charging 30% commission on all purchases of apps, in-app content and subscriptions, generating massive and rising profits.”

The suit seeks compensation for any person who purchased an app or piece of in-app content in the Portuguese versions by the two tech giants. Customers do not need to take any initial action but will be notified of any ruling in their favor.

Portugal became the fifth country to bring a class action suit against Apple and Google over the 30% cut, following the U.S., U.K., Netherlands, and Australia.

Source:  AppleInsider