Apple Barred Publisher’s App Store Account for Fraud Without Explanation: Complaint

The complaint seeks at least $756,000 in damages for Digital Will’s lost App Store revenue, plus for the higher costs it incurred to hire legal help and scramble to find an alternative commercial outlet for its games and apps. It alleges breach of implied covenant of good faith and fair dealing, intentional interference with contractual relations and with prospective economic advantage, and negligent interference with prospective economic advantage.

Apple didn’t identify “any specific facts whatsoever, or any particular misconduct in which Digital Will engaged” that may have violated its Apple developer program license agreement, said the complaint. “Notably, and importantly,” it said, Digital Will’s App Store account “has never been used for dishonest or fraudulent activity.” Apple’s “apparently automated” messaging “was keen to levy serious allegations of misconduct and moral turpitude against Digital Will without providing any facts, examples, or details whatsoever,” it said.

Having been shut off from doing business through the App Store, there’s “no question” that Apple’s “flagrant and inappropriate termination” of Digital Will’s account “would, and did, have a devastating effect on Digital Will,” said the complaint. Digital Will “is a small company,” and the losses it sustained due to Apple’s misconduct “had a significant impact on its ability to pay its six employees and survive,” it said.

Digital Will hired counsel in June 2022 to send a letter to Apple demanding it reinstate Digital Will’s App Store account and compensate the company for its “reasonable economic losses and attorneys’ fees,” said the complaint. Apple took more than two months to respond when it reinstated the account “without providing any explanation or details to support its termination” of that account “in the first instance,” it said. Apple also ignored the demand for compensation to reimburse Digital Will “for its losses Apple caused,” it said.

Apple’s reinstatement notice “acknowledges” it terminated the account “without justification,” said the complaint. By the time that Apple finally reinstated the account, Digital Will “had already sustained significant damages,” the complaint said. The harm Apple caused Digital Will could have been avoided if Apple had simply communicated with the company “before unilaterally and improperly terminating its account,” it said.

Due to Apple’s “abrupt and unjustified” termination of Digital Will’s App Store account, Digital Will’s revenue from game sales “went to zero for at least five months,” said the complaint. To stay in business and remain relevant in the marketplace, it “was forced to transfer its games and apps to other publishers,” it said.

That resulted in Digital Will “incurring significant additional costs and damage to its reputation,” said the complaint. It further resulted in Digital Will “losing app development revenue, losing its best customer, preventing it from developing for Mac and iOS, and being forced to retain counsel and needlessly incur legal fees and costs to resolve this issue with Apple,” it said. Apple’s “false accusations” caused Digital Will’s preexisting clients, partners and contractors, who relied on the false statements, “to lose trust in Digital Will and revoke their business,” it said. Apple’s misconduct created the false appearance that Digital Will “engaged in some unidentified impropriety,” it said.

Digital Will seeks an award of compensatory and consequential damages “in an amount to be proven at the time of trial or entry of judgment,” but not less than $765,000, plus accrued and accruing interest, said the complaint. It also seeks exemplary and punitive damages against Apple to be proven at trial, it said. Apple didn’t comment Tuesday.