Developer Lawsuit Could Add To Apple’s Antitrust Woes

The suit alleges unfair practices by Apple related to its App Store, mirroring a previous lawsuit brought against Apple by consumers.

A day after a report of a possible antitrust investigation of Apple by the U.S. Justice Department, two iOS developers filed a lawsuit accusing Apple of "anticompetitive conduct" in its App Store.

The lawsuit adds to the legal issues Apple is facing related to its practices around the App Store, which is the only method allowed by Apple for iPhone app distribution. Apple receives up to 30 percent of the app price as a commission.

[Related: Lawsuit Seeking To Change Apple's iPhone App Policies Could Alter Risk Picture For Enterprises]

Developer Donald R. Cameron of California and app maker Illinois Pure Sweat Basketball on Tuesday filed a federal lawsuit against Apple, contending that the company is engaging in unfair practices by requiring the iPhone apps are sold through the App Store.

A similar argument was previously brought forward by a group of consumers as part of a suit against Apple in 2011, and then again in a revival of the lawsuit in 2017. In May, the U.S. Supreme Court upheld a decision from a lower court that that lawsuit—which is a proposed class action suit—could move forward.

In the new case, the developers are claiming that Apple's App Store conduct is "analogous to a monopsonist retailer paying artificially low wholesale prices to its suppliers," the lawsuit reads.

"In both paradigms a competitive market would yield better post-commission or wholesale prices, and fairer profit, for developers’ digital products," the lawsuit, filed in the U.S. District Court for the Northern District of California, says. “It would also mean higher, and fairer, profits for developers as Apple’s $.99 and end-in-$.99 pricing mandates were extinguished by competitive forces, such that developers could price at lower and different price points in order to maximize volumes.”

The developers are ultimately accusing Apple of being “engaged in unfair competition.”

Apple did not immediately respond to a request for comment.

Meanwhile, Cupertino, Calif.-based Apple looks to be the latest in tech giant to be investigated by federal regulators.

Reuters reported Monday that the U.S. Justice Department will lead a potential new probe into whether Apple abused its position in the market to stymie competition.

The Department of Justice's Antitrust Division assumed jurisdiction over the Apple investigation after a meeting sometime in the last few weeks with representatives of the Federal Trade Commission, according to the news agency. Apple has not responded to a request for comment on the reported DOJ investigation.

Some developers of iPhone apps--most notably competing music streaming service Spotify, in a formal complaint filed with the European Union--have complained about how Apple charges subscription fees for products sold through its App Store.