App developers sue Apple, alleging anticompetitive behavior with App Store

Two app developers sued Apple on Tuesday, alleging the company’s Apple Store is anticompetitive.

California developer Donald Cameron and Illinois-based Pure Sweat Basketball filed the suit in federal court in San Jose, California, arguing that only allowing apps to be downloaded onto iPhones via the Apple Store stifles developers.

{mosads}The suit cites several examples of what they call unfair results of that control, including that developers have to pay Apple 30 percent commissions on app purchases and a $99 yearly fee and that Apple dictates minimum and maximum price points.

“This practice is analogous to a monopsonist retailer paying artificially low wholesale prices to its suppliers,” the developers said in their suit.

“In both paradigms a competitive market would yield better post-commission or wholesale prices, and fairer profit, for developers’ digital products.”

Apple did not immediately respond to a request for comment from The Hill on the suit.

Tuesday’s lawsuit closely mirrors one from consumers who allege that Apple’s practices have artificially inflated the price of software in the App Store, according to Reuters.

That case was stalled because of a legal question over whether consumers could sue Apple because developers, not consumers, have a contract with Apple to be in the App Store and pay fees. The Supreme Court ruled last month that the case could continue.

Tuesday’s lawsuit comes amid escalating antitrust scrutiny of Apple by the government.

On Monday, the Department of Justice (DOJ) and the Federal Trade Commission reportedly reached an agreement for the DOJ to handle antitrust investigation of Apple and Google.