Apple’s antitrust agreements prompt law firm to make another attempt

The law firm, which successfully negotiated two antitrust agreements with Apple, is taking on the Cupertino company again.

Hagens Berman, who won a $560 million e-book deal and most recently a $100 million App Store deal, is once again targeting Apple’s 15 percent to 30 percent cut in iOS app sales…

Apple Antitrust Settlement by Hagens Berman

Apple was found guilty of artificially controlling the price of e-books back in 2013, which later led law firm Hagens Berman to receive payouts for clients who bought e-books from Apple over a two-year period.

The same firm was also behind a recent class action lawsuit on behalf of small developers. The total settlement was $100 million, paid out through a mechanism that allowed Apple to turn it into a PR win, though the judge questioned the firm’s 27 percent cut.

Lawyers are also battling the Apple Pay antitrust lawsuit on behalf of banks, arguing that anti-competitive practices are forcing card issuers to sign up for Apple Pay if they want to get their cards in the Wallet app.

New antitrust case in the App Store

Now the firm is looking for a solution similar to the App Store, this time in France. They work with Paris-based antitrust lawyer Fairuz Masmi-Dazi. So far, there are only three plaintiffs, but lawyers invite all French developers to join the case.

The plaintiffs in the lawsuit include the developers of the news app Figaro, the sports app L’Équipe and le GESTE, the French association of online content publishers.

The proposed class action lawsuit seeks to force Apple to end its abusive monopoly, ban pricing, and reimburse developers for inflated prices made as a result of abusing their monopoly power. […]

“We have just completed our hard-won agreement with Apple and are ready to get back in the ring,” said Steve Berman, Hagens Berman managing partner and attorney representing the proposed iOS developer class. “Our firm is pleased to see iOS developers from other countries seeking the same fairness that we have been able to achieve for US developers. We believe they have also been wrongfully subjected to Apple’s App Store chokehold policy, and we intend to hold Apple accountable.”

“Le GESTE and its members are indeed at the forefront of several initiatives and battles for a more balanced and fair functioning of the digital world in France and Europe. By its nature and scale, today’s actions demonstrate our determination to achieve such change and redress,” said Bertrand Gy, President of Le GESTE and Head of Digital at Le Figaro, and Emmanuelle Alix, Vice President of GESTE and Head of Digital at L ‘Equipe.

“Apple’s policies and restrictions pose serious challenges for all iOS developers using the App Store. A global problem must have a global solution. I believe we can build strong bridges to conceive impactful action as we leave no room for impunity,” said Fairuz Masmi-Dazi, Le GESTE antitrust attorney and attorney representing the proposed iOS developer class in collaboration with Steve Berman.

Although the case is being filed on behalf of the French developers, it was filed in California.

The case was filed in the U.S. District Court for the Northern District of California, resulting in the French developers’ claims being referred to Apple’s home court. He accuses Apple of using the anti-competitive practice of only requiring a single app store for iOS devices, setting the stage for Apple to abuse its bargaining power.

The firm will also seek agreements similar to those reached in the original US case.

Smaller iOS developers in the US will also benefit from the promise that for at least three years after the settlement is approved, Apple will not raise the 15% commission rate that applies to those who participate in its small business program.

Among other benefits of the settlement agreement, Apple will allow all iOS developers in the US to communicate with their customers outside of their apps about purchasing methods other than Apple’s IAP system. Apple will also remove the ban on U.S. developers using information obtained in their apps to communicate with their customers outside of their apps about using non-IAP purchasing methods, subject to consumer consent and opt-out security measures.

Image: Alexander Shatov/Unsplash

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