By Sam Tobin
LONDON (Reuters) – Apple is facing accusations of abusing its dominant position by imposing a 30% commission on app developers through its App Store, potentially costing British consumers an estimated 1.5 billion pounds ($1.8 billion). These allegations were presented at a London tribunal on Monday.
The tech giant is now confronted with a mass lawsuit on behalf of approximately 20 million iPhone and iPad users in the United Kingdom, claiming that these users were unfairly overcharged for their app purchases.
In response to these claims, Apple has stated that the lawsuit lacks merit and fails to recognize the advantages that consumers benefit from through the integrated nature of its iOS operating system. This system is designed to prioritize security and privacy for users.
The ongoing lawsuit at London’s Competition Appeal Tribunal marks a significant development as the first mass legal action against a major tech corporation to reach trial within Britain’s evolving class action-style legal framework. Several other similar cases are awaiting their turn in the legal process.
In a separate legal battle, a comparable $1.1 billion lawsuit against Google concerning the commission it levies on app developers for accessing its Play Store is scheduled to commence later in 2025.
Furthermore, Apple is also contending with another lawsuit initiated by app developers regarding the commissions charged on transactions made through its App Store. At the same time, Google, Meta, and Amazon are engaged in legal disputes involving high-value mass litigations in the UK.
Rachael Kent, the British academic leading the current case, alleges that Apple has reaped “exorbitant profits” by maintaining a monopoly over the distribution of apps and in-app purchases without any competitive alternatives. According to Kent’s legal team, this dominant market position allows Apple to impose stringent conditions on app developers and impose what they consider to be excessive commissions, ultimately passed on to consumers.
Kent’s attorney, Mark Hoskins, emphasized in court documents that Apple stands not just as a dominant entity but effectively holds a monopoly share of 100% in the market. On the other hand, Apple’s legal representation, Marie Demetriou, has countered these claims by highlighting that 85% of developers are exempt from paying any commission at all.
Demetriou argued in court filings that the imposed commission accurately reflects the substantial benefits derived from Apple’s innovative contributions to the iOS ecosystem as a whole. She further dismissed Kent’s assertions, stating that they disregard Apple’s intellectual property rights and essentially demand that Apple relinquish control over its technology, portraying this as an unjust encroachment on property rights under the guise of competition.
The trial, expected to last seven weeks, anticipates the testimonies of key figures such as Apple’s chief financial officer, Kevan Parekh, later in the week.
(Reporting by Sam Tobin; Editing by Kirsten Donovan)
