Apple may be sued in the Netherlands for alleged anticompetitive App Store activities, according to a ruling by Europe’s highest court on Tuesday. This might lead to more widespread class-action damages claims against the tech giant throughout the EU.
Apple’s claim that Dutch courts lacked jurisdiction to hear the case, which was launched by two consumer advocacy charities contesting the company’s app distribution fees, was rejected by the Court of Justice of the European Union. The decision permits Stichting Right to Consumer Justice and Stichting App Stores’ lawsuit to move forward in Amsterdam. The foundations claim that Apple misuses its market dominance by imposing exorbitant commissions, up to 30% per sale, on apps that are distributed via its platform.
Battle Of Jurisdiction
Apple had argued that because the claimed detrimental activity did not take place in the Netherlands, Dutch courts lacked jurisdiction over the case. Judges at the Luxembourg-based court, however, disagreed, pointing out that Apple runs an App Store tailored for the Dutch market that is available to consumers with Dutch-registered Apple IDs and is available in Dutch.
“The damage suffered when those purchases are made can therefore occur in that territory, irrespective of the place where the users concerned were situated at the time of the purchase,” the judge said. The justices came to the conclusion that Dutch courts had jurisdiction over the claims on both a territorial and international level.
Wider Consequences
The ruling is yet another blow to Apple in Europe, where authorities are closely examining the company’s App Store policies. Apple was fined €500 million by the European Commission in April for breaking the Digital Markets Act by prohibiting developers from referring customers to other payment methods. In September, a different UK panel found that Apple had exploited its dominating position and granted damages to over 36 million iPhone and iPad users.
The Dutch verdict may expose Apple to more class-action damages claims throughout the EU by allowing users, regardless of their location, to file collective cases in the Netherlands. The foundations contend that Apple’s fees are illegal abuses of a dominating market position, are excessive, and hurt consumers by increasing app pricing.
Apple chose not to respond to the decision. Requests for comment were not immediately answered by the foundations.