Apple faces £1.5B lawsuit over App Store 'overcharging' in UK
What's the story
Apple is about to be hit with a class-action lawsuit in the UK, demanding £1.5 billion ($1.84 billion) in damages for anti-competitive practices with its App Store. The lawsuit, filed by King's College London researcher Dr. Rachael Kent, accuses Apple of breaching UK and European competition laws by forcing iOS users to download apps solely through its platform and charging up to 30% commission on developers for purchases.
User representation
Lawsuit represents nearly 20 million UK Apple users
The lawsuit covers some 19.6 million UK iPhone and iPad users who could have been overcharged for apps and in-app purchases between October 2015 and November 2024. According to UK law, these affected users are automatically part of the claim unless they opt out. Kent contends that the App Store, once "a brilliant gateway" for services, has now become "the only gateway" for millions of consumers due to Apple's monopolistic behavior.
Defense stance
Apple refutes allegations, defends App Store commission rates
In response to the lawsuit, Apple has categorically denied the allegations, calling them "meritless." The tech giant claims its App Store commission rates are "very much in the mainstream" when compared to other digital marketplaces. It also emphasizes that 85% of apps on its platform are free and many developers qualify for a reduced 15% commission rate.
Trial duration
Trial expected to last 7 weeks
The trial, which will be held at the Competition Appeal Tribunal, is expected to continue for seven weeks. This lawsuit is one of the many legal challenges Apple is facing globally over its App Store practices. Apart from this case, the company is also fighting another UK lawsuit worth £785 million over developer fees.