Apple and Google Play Store to face multi-billion-euro class action lawsuit

A foundation led by Dutch entrepreneur Alexander Klöping is reportedly preparing to file a class-action lawsuit against Google and Apple and is now calling the plaintiffs.

Clopin said Apple and Google are abusing their dominance by charging app developers up to 30 percent of every transaction in their app stores. This is unfair, and app developers are forced to pass this cost on to users.

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The App Store Claims Foundation, headed by Clopin, says on its website: Apple and Google exclude competition from app stores and digital payment systems and charge for digital purchases made through their app stores. Excessive commissions of up to 30% are against competition law.

Since the launch of the Apple and Google App Stores, Dutch consumers have paid about 1 billion euros to the two companies, the foundation said. To this end, the foundation is preparing to claim this part of the cost from Apple and Google. “To this end, we will take collective action against Apple and Google to recover losses for all users of both app stores,” the foundation said.

Apple has not responded to a request for comment. A spokesman for Google parent Alphabet did not comment directly, but said the company had reduced Google Play fees.

As early as 2019, the Netherlands’ top competition regulator, the Consumer and Market Authority (ACM), conducted an investigation into whether Apple had abused its dominant market position. In December last year, ACM believed that Apple’s App Store application store has monopolistic behavior and must be rectified.

The Google and Apple app stores have come under increasing scrutiny around the world in recent years. In late April last year, the European Commission accused Apple of setting restrictive rules for its App Store, forcing developers to use Apple’s own in-app payment system and preventing developers from informing users of other purchasing options.

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