Apple Sued by AI Startup Over App Store Ban, $500K in Withheld Revenue

AI startup Ex-Human is taking Apple to court over an App Store ban it says was the result of "arbitrary" enforcement aimed at sidelining a growing competitor, according to a report from the San Francisco Business Times. The lawsuit, filed this week in federal court in the Northern District of California, alleges that Apple is withholding $500,000 in revenue while failing to provide clear reasons for removing the company's apps from its storefront.



The dispute centers on two high-earning apps, Botify and Photify AI. According to the filing, Apple cited "dishonest or fraudulent activity" as the reason for the removal but did not provide the developer with specific examples of the alleged misconduct. Ex-Human says Apple denied multiple appeals and failed to clarify its decision. The company also notes that Apple's own business development team had previously identified it as a "high-growth developer." Botify has reportedly been downloaded 2.3 million times and generated roughly $330,000 per month in revenue, while Photify AI brings in about $100,000 monthly, according to the complaint.


A key claim in the lawsuit is that Apple's enforcement was timed to benefit its own internal features. The startup alleges that the removal of Photify AI, an avatar generation tool, coincided with Apple's promotion of its own Image Playground feature. Ex-Human says it submitted side-by-side comparisons of the two products to the court, arguing that Apple is using its control of the App Store to stifle competition.

The developer's apps have not been without controversy. Botify was previously criticized in a report by MIT Technology Review for allegedly hosting sexually explicit conversations involving underage celebrity characters. Photify AI has also faced scrutiny for its ability to generate revealing images of real people without their consent. Despite those concerns, the lawsuit notes that both apps remain available on the Google Play Store. Apple did not respond to a request for comment in the report. Ex-Human is seeking an injunction to restore its apps on the App Store and is demanding the immediate release of the $500,000 in withheld earnings.