Apple and Google have been sued in Portugal by a group of people who say that their 30 percent commission rates on app marketplaces hurt competition and are too high.
According to a law school professor in Portugal, damages of up to 100 million euros are being sought in the competition court lawsuits. According to a statement from Hausfeld, the law firm representing the case, claims that Apple and Google have “systematically behaved in defiance of competition law” by overcharging Portuguese customers, according to a statement from the firm.
There are around 2.9 million Apple App Store customers and 3.6 million Google Play Store users who are represented by Professor Fabrizio Esposito, the filer.
App and in-app purchases on the App Store and Play Store are being slashed by 30 percent, according to a complaint filed against Apple and Google. Both tech companies claim they can’t collect fees because of technical and contractual restrictions that prevent alternative app shops from offering their services.
“This is the latest in a long line of claims and regulatory investigations against the tech giants,” said partner attorney Lesley Hannah. “They are accused of breaking competition law by charging a 30% commission on all purchases of apps, in-app content, and subscriptions, making huge and growing profits.”
The lawsuit is seeking reimbursement for anybody who purchased an app or piece of in-app content from the Portuguese editions of the App Store or Google Play Store.
Consumer-led lawsuits allege that Apple’s 30 percent price decrease is anti-competitive on a number of occasions, including this one. There is similar litigation underway against Apple in the U.S., the United Kingdom, the Netherlands, and Australia.
The Cupertino tech behemoth is also facing heightened antitrust scrutiny from countries and regulatory groups, as well as legislation that might force Apple to adjust its economic model.
In recent years, we have seen decreasing commission rates from Apple and Google. Businesses producing less than $1 million through the App Store can take advantage of Apple’s 15% commission rate. In response to the launch of Apple’s program, Google lowered all subscription commissions to 15%.