Apple Battling £1.5 Billion Lawsuit in Landmark UK Class Action Over App Store Commission
Apple is currently facing a legal battle in the UK, accused of abusing its market power by charging a 30% commission on app sales through its App Store, which the plaintiffs claim has cost British consumers up to £1.5 billion ($1.8 billion). The lawsuit, filed on behalf of around 20 million iPhone and iPad users, argues that Apple’s fees have led to inflated prices for apps, impacting consumers across the United Kingdom.
The case, which began on Monday at the Competition Appeal Tribunal in London, is the first mass class-action lawsuit to reach trial under the UK’s growing class action regime. The outcome could have significant implications for Apple and other tech giants facing similar claims. A comparable lawsuit is also being prepared against Google for its Play Store fees, set to begin in 2025.
Apple, however, disputes the lawsuit’s merit, arguing that the 30% commission supports the secure and privacy-focused ecosystem of its iOS operating system, which benefits consumers. The tech giant maintains that its approach allows for a seamless user experience and emphasizes the value of its integrated system, including features that prioritize security.
The case is led by British academic Rachael Kent, who argues that Apple has achieved “exorbitant profits” by monopolizing the app distribution market, which restricts competition and imposes excessive costs on developers. Kent’s legal team claims that this monopolistic behavior directly impacts consumers, with the inflated fees being passed down the chain.
Apple’s legal representative, Marie Demetriou, countered these claims, stating that 85% of app developers do not pay any commission, and that the fee structure reflects the “enormous benefits” of Apple’s ecosystem. Demetriou also challenged the plaintiffs’ arguments as a misrepresentation of intellectual property rights, describing them as a form of “expropriation” of Apple’s technology.
This high-profile case is expected to last seven weeks, with testimony from Apple’s chief financial officer, Kevan Parekh, anticipated later this week. The outcome could set a precedent for future class-action lawsuits targeting the fees charged by major tech companies.
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