Developer Files Lawsuit Against Apple Over App Store Scams

Kosta Eleftheriou, previously a co-founder at Fleksy – a keyboard application later acquired by Pinterest – has publicly voiced concerns regarding problems within the Apple App Store. These issues include fraudulent reviews, manipulated ratings, subscription-based scams, and the proliferation of malicious clone applications. His advocacy began after his own application, FlickType, became a target for deceptive practices.

Allegations of a Breach of Trust

The lawsuit, filed Wednesday in California Superior Court, Santa Clara county, asserts that Apple actively encouraged developers to create applications for its App Store, positioning it as a secure and reliable platform. However, the suit claims Apple fails to adequately safeguard legitimate developers from scammers who profit from their efforts.

Furthermore, the filing suggests Apple is not incentivized to address these issues, as scammers generate revenue for the company through subscription services, which involve a revenue-sharing agreement.

Personal Impact on FlickType

Eleftheriou personally experienced the negative effects of App Store scams. He left a stable position at Pinterest to focus on developing FlickType, a swipe keyboard designed for the Apple Watch.

Following its release, the app was subjected to imitation by copycat developers. These developers marketed apps claiming similar functionality to FlickType, but instead imposed expensive subscriptions on users for substandard software.

These fraudulent apps also utilized fake ratings and reviews to artificially inflate their perceived quality, misleading potential users.

FlickType's Struggle for Visibility

Despite its merits, FlickType currently holds a 3.5-star rating. This is often due to issues related to the Apple Watch platform, which are beyond the developer’s control, or requests for features not yet implemented.

Eleftheriou actively engages with his user base, responding to feedback and informing them about updates and bug fixes. In contrast, scammers rely on purchasing large quantities of positive reviews to maintain higher overall ratings.

Essentially, Eleftheriou contends that his efforts to innovate within the App Store are undermined by scam applications that benefit from a fabricated online presence.

A Shift in Apple's Approach

Historically, Apple prioritized app quality, actively removing fraudulent subscription apps, clones, and spam through regular audits. The company even temporarily banned apps built using templates to elevate quality standards, though this policy was later adjusted.

The current lawsuit alleges that Apple is now neglecting to police scam apps due to the financial benefits derived from developer misconduct. Eleftheriou also states that his concerns, raised through his company KPAW, LLC, were largely ignored by Apple.

Acquisition Discussions and Subsequent Rejections

The situation is further complicated by previous interactions with Apple. Eleftheriou recounts meetings with Randy Marsden, Apple’s special projects manager, regarding a potential acquisition of FlickType.

Discussions regarding a possible purchase took place, involving Apple directors and vice presidents, with the possibility of integrating FlickType’s functionality directly into the Apple Watch.

Shortly after these meetings, FlickType was removed from the App Store due to alleged violations of the App Store Review Guidelines, despite a competitor’s similar app being approved.

Inconsistent App Review Decisions

Following appeals through Developer Relations, Eleftheriou received no guidance on preventing future rejections. Apple’s App Store Review team cited a “poor user experience,” despite positive reviews from tech journalists.

The team also stated that “full keyboard apps are not appropriate for Apple Watch,” while simultaneously approving competing keyboard applications. Furthermore, apps integrating FlickType’s keyboard functionality, such as Nano for Reddit and Chirp for Twitter, were approved without issue.

Revenue Loss and the Rise of Competitors

After FlickType’s eventual approval in January 2020, the developer had already lost over a year of potential revenue to competitor keyboards that faced fewer obstacles. The app quickly achieved a Top 10 Paid ranking and generated $130,000 in its first month.

This success attracted scammers who launched inferior imitations, reducing FlickType’s revenue to $20,000 per month. These competitors also employed fake ratings to boost their visibility.

Documenting a Widespread Problem

Eleftheriou’s experience proved to be far from isolated. He began documenting widespread scams within the App Store, sharing his findings and those of other developers facing similar challenges.

Apple occasionally addressed the scams he highlighted on social media, but often took inconsistent action, sometimes removing only a portion of a developer’s fraudulent apps while allowing others to remain active.

Seeking Accountability and Damages

The lawsuit seeks to hold Apple accountable for the issues Eleftheriou faced, requesting the restoration of his lost revenue and any additional damages awarded by the court.

Apple has not yet issued a comment in response to the lawsuit.

A copy of the lawsuit is available for review.

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