A BRIEF ABOUT THE CASE
App Stores Claims Foundation, an independent, not-for-profit organization of the Netherlands bought up a class action suit against Apple and Google over app store charges and google app payments. The foundation was represented by law firm Hausfeld and Fortress Investment Group had agreed to fund its litigation costs and provide support in such class actions against both Apple and Google. The potential actions were over the restrictive conditions imposed by the multinationals that compelled app innovators to offer apps and in-app purchases exclusively through the app stores resulting in charging an excessive commission that ranged up to 30%. The developers of paid apps, in-app purchases were obligated to pay much higher commissions to Apple and Google. It was alleged that these extra costs were then passed on to consumers, and this way Dutch users ended up paying approximately a billion euros and more.
The foundation was headed by Dutch entrepreneur Alexander Klopping who co-founded Blendle, a digital platform enabling users to buy individual news articles. The main motive behind setting up this foundation was to represent the interests of all Apple App Store and Google Play Store users.
During the case proceedings, formal notices had been intimated to both the offices of both Apple and Google. After a couple of days i.e., in April, evidence was submitted to the Amsterdam District Court by Hausfeld’s lawyer- Rob Okhuijsen. It was further assumed that in case the judge finds the compliant worthy and he agreed, the court would then begin weighing the merits of the complaint.
It was also found that Apple did not pay heeds to the users’ requests while, a spokesperson for Alphabet, who owns Google informed that the company had reduced fees on Google Play. Dutch authorities had already chastised Apple for its app store practices. The Authority for Consumers and Markets (ACM) ordered Apple in December to allow dating app developers in the Netherlands to accept non-Apple payment methods. Needless to mention, Apple, had been fined $5.7 million four separate times for failing to comply with their compliances under law.
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