Apple Faces £1.5 Billion UK Lawsuit Over App Store 'Overcharging'
Apple is heading to court in London on Monday to defend against a class-action lawsuit seeking £1.5 billion ($1.9 billion) in damages over alleged anti-competitive App Store practices in the UK.
Filed by Kings College London academic Dr. Rachael Kent, the lawsuit claims Apple has violated UK and European competition laws by requiring iOS users to download apps exclusively through the App Store while charging developers a commission of up to 30% on purchases.
The legal action represents around 19.6 million UK iPhone and iPad users who may have been overcharged for apps and in-app purchases between October 2015 and November 2024. Under UK law, affected users are automatically included in the claim unless they opt out.
Kent argues that while the App Store was initially "a brilliant gateway" for services, it has become "the only gateway" for millions of consumers, with Apple acting as a monopolist by blocking access to alternative platforms that could offer better deals.
Apple has firmly rejected the allegations, calling the lawsuit "meritless," and says that its App Store commission rates are "very much in the mainstream" compared to other digital marketplaces. The company says that 85% of apps on the App Store are free, and many developers qualify for a reduced 15% commission rate.
The trial at the Competition Appeal Tribunal is expected to last seven weeks and is one of several legal challenges Apple faces globally regarding its App Store practices.
The company is also defending against a separate £785 million UK lawsuit related to developer fees and was recently fined €500 million ($538 million) by the European Commission for breaching digital competition rules relating to music streaming services.
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