Apple Under Fire: Class Action Lawsuit Erupts Over Alleged App Store Ruling Defiance
In a significant development that could further shake Apple's control over its App Store, the tech giant is facing a class-action lawsuit from app developers. This legal action comes on the heels of a recent court ruling where Apple was found in contempt for allegedly failing to comply with an earlier injunction related to its App Store policies. Developers are now claiming that Apple's inaction has cost them substantial revenue, potentially amounting to hundreds of millions, if not billions, of dollars.
The lawsuit, spearheaded by the law firm Hagens Berman – the same firm that previously secured a $100 million settlement for iOS developers in a separate App Store class action – alleges that Apple deliberately circumvented a 2021 court order. This original injunction mandated that Apple allow developers to inform users about alternative payment methods outside the App Store, thereby bypassing Apple's commission fees, which typically range from 15% to 30%.
The Heart of the Matter: The Epic Games Injunction
The initial injunction stemmed from the antitrust battle between Apple and Epic Games, the creator of the popular game Fortnite. While the court largely ruled in favor of Apple, it did find the company's "anti-steering" provisions – rules preventing developers from informing users about other ways to pay – to be anticompetitive under California's Unfair Competition Law. The injunction, which went into effect in January 2024, was intended to foster more price transparency and competition within the App Store ecosystem.
However, instead of fully complying, Apple implemented a system that still imposed a 27% commission on purchases made through external links and introduced restrictions on how these links could be presented within apps. This led Epic Games to file a complaint, arguing that Apple's measures constituted "malicious compliance" and continued to violate the spirit of the original order.
Contempt of Court and a New Legal Challenge
On April 30, 2025, Judge Yvonne Gonzalez Rogers sided with Epic Games, finding Apple in contempt of court for willfully violating the 2021 injunction. In a strongly worded ruling, Judge Rogers accused Apple of choosing the "most anticompetitive option" and even suggested that the company had misled the court. She has since referred Apple and one of its executives to federal prosecutors for potential criminal contempt charges.
Now, emboldened by this contempt ruling, a new class-action lawsuit has emerged. The plaintiff, Pure Sweat Basketball Inc., an app developer offering training programs, claims that Apple's failure to properly implement the injunction has directly harmed developers. According to the lawsuit, had Apple complied with the original order, developers like Pure Sweat would have been able to offer subscriptions and other in-app purchases directly to their customers through external links, thus avoiding Apple's commissions.
Billions in Lost Revenue?
The lawsuit estimates that Apple's non-compliance has resulted in "hundreds of millions to billions" of dollars in lost revenue for developers over the past 15 months since the injunction was supposed to be enforced. This figure aligns with Apple's own internal estimates of the potential revenue impact of fully adhering to the injunction.
Hagens Berman managing partner Steve Berman stated, "It appears as though Apple has been caught red-handed blatantly seeking to undercut the law. We believe app developers deserve a fair market to promote and sell their products, and the world's largest corporation doesn't get to bully them out of this billion-dollar revenue stream."
The
Apple's Response and the Road Ahead
Apple has denied any wrongdoing and has already filed an appeal against the contempt ruling. While the company has begun allowing external payment links in some updated apps, the legal battles appear far from over.
This class-action lawsuit adds another layer of complexity to Apple's ongoing struggle to maintain its control over the App Store ecosystem. Developers, who have long voiced concerns about Apple's commission fees and restrictive policies, may see this as a significant opportunity to reclaim lost revenue and push for a fairer marketplace.
The outcome of this lawsuit and Apple's appeal in the Epic Games case could have profound implications for the future of the App Store, potentially reshaping the relationship between Apple and the developers who rely on its platform to reach millions of users worldwide. As the legal proceedings unfold, the app development community will be watching closely, hoping for a resolution that fosters greater competition and allows them to thrive in a more equitable environment.
