Apple is set to face trial in the UK today in a £1.5 billion class action lawsuit over claims that the tech giant has breached competition laws by exploiting its dominant market position to charge developers excessive fees. The case, which begins in the Competition Appeal Tribunal (CAT) in London, represents a significant challenge to the business practices of major technology companies, particularly those accused of monopolistic behaviour.
The lawsuit was initiated by Dr. Rachael Kent, the lead claimant, who argues that the lack of choice for iPhone users forces them to accept Apple’s terms on the App Store. With Apple and Google controlling almost the entire app store market, Dr. Kent pointed out that in 2023, Apple accounted for 67% of global app revenue, while Google secured 23%. This monopolistic control, she argues, leaves users with little option but to pay the inflated fees imposed by Apple.
“We have to use these apps to manage our lives,” Dr. Kent said. “We can only use the App Store to access the apps that we want, which limits our ability to choose not to pay these high commission rates.”
While Dr. Kent acknowledged Apple’s contributions as a leading tech innovator, she emphasized that innovation should not justify monopolizing the market and imposing excessive fees on developers and consumers alike.
The trial, expected to last around seven weeks, is the first of its kind under the UK’s updated Digital Markets, Competition and Consumers Act (DMCC), passed in 2024. The legislation is designed to address the anti-competitive behaviour of digital giants like Apple and Google and aligns with the EU’s Digital Markets Act. Dr. Kent praised the new legal framework, calling it a “fantastic regime” that positions the UK at the forefront of regulating Big Tech.
She added that if the case is successful, it could set a precedent that would empower similar legal actions around the world.
Apple and Google each take a 30% commission on revenue from third-party apps downloaded through their stores, a practice that has sparked outrage among developers. Companies like Spotify, Epic Games, and Deezer have come together to form the Coalition for App Fairness (CAF), which advocates for more competition-friendly practices in the app market. Some members of CAF are directly involved in the ongoing litigation.
Gene Burrus, the global policy council for CAF, expressed confidence in the UK’s Competition and Markets Authority (CMA), stating, “The CMA is definitely a more than capable regulator, and they’ve set up a team with both the experience and expertise to get the job done effectively.”
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