Apple and Google Face Australian Class Action Over In-App Purchase Practices
Apple and Google are facing a consumer class action in Australia. The lawsuit, led jointly by Maurice Blackburn Lawyers and Phi Finney McDonald, alleges the tech giants breached consumer law by blocking competitors from offering better value payment systems for in-app purchases. The Federal Court has allowed local app designers and founders to join the suit, claiming they've suffered loss or damage due to the companies' practices.
The class action argues that Apple and Google inflated prices by forcing developers to use their own platforms for in-app purchases, charging a 30 percent commission. This, the lawsuit claims, is a breach of Australian Consumer Law. The tech giants control a significant portion of the smartphone market in Australia, with Apple making 55 percent of sales and the rest running on Google's Android system.
App developers interested in joining the class action can contact Phi Finney McDonald for further information. In 2021, Apple settled a similar U.S. class action, allowing app developers to use alternative payment systems. However, there's no recent information on the current status of the Australian lawsuit regarding the involvement of local app designers and founders.
The class action against Apple and Google is ongoing in the Federal Court of Australia. It seeks to address the alleged abuse of market power by the tech giants in relation to in-app payment systems. The outcome could significantly impact the local app development industry and consumer choices.
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