Australian app users suing Apple and Google

Australian app users are suing Apple and Google. The California-based technology giants have allegedly used their market powerin the distribution of apps in Australia to force developers to use Apple and Google payment systems for apps and in-app purchases, then charged commissions of as much as 30 per cent.

It is alleged Apple and Google had superior bargaining positions to app developers; took advantage of that position to breach consumer law; required developers to enter into non-negotiable, standard contracts that the tech giants would unilaterally amend; and the conduct was not necessary to protect their business interests.

The class actions on behalf of consumers alleged this conduct breached Australian Consumer Law and resulted in higher prices than if competition was allowed in payment methods for apps and in-app purchases.

Previously the Australian competition regulator has identified issues in 

Apple’s App Store and the Google Play Store including the companies’ market power, the terms for app developers, payment arrangements and concerns with alleged self-preferencing.

 “The duopoly in the market for mobile OS and the significant barriers to entry and expansion provide each of Google and Apple significant market power in the supply of mobile operating systems in Australia,” the Australian Competition and Consumer Commission wrote in its study of the app marketplace as part of its digital platform services inquiry series.

- CyberBeat