Apple faces £1.5 Billion UK lawsuit for allegedly charging unfair fees on its App Store

Apple is back under fire in the UK, for allegedly charging unfair commissions on its App Store. Reportedly, the unfair practice may have cost approximately 20 million iPhone and iPad users in the UK up to £1.5 Billion (roughly $1.8 billion). Apple is already facing a $1 billion class action in the UK by British developers, and now app buyers have also joined forces. The UK lawsuit accuses Apple of abusing its dominant position by imposing a 30% commission on app purchases.

The case is currently being heard at London's Competition Appeal Tribunal. Notably, it marks the first mass legal action of its kind against a tech giant in the United Kingdom. With this lawsuit, Apple joins the unfortunate bandwagon of tech giants including, Google, Meta, and Amazon, who are also fighting high-value legal challenges in the country. A similar $1.1 billion case against Google, is set to begin later this year.

Rachael Kent, a UK academic leading the lawsuit, claims that Apple's dominant position and its control over app distribution has allowed the company to make huge profits while keeping app developers and users under restriction. Her legal team has urged that "Apple is not just dominant ... it holds a 100% monopoly position."

Apple, however, denied the allegations. The company's lawyer, Marie Demetriou, said in court filings that the commission reflects "the enormous benefits conferred through Apple's innovation by the iOS ecosystem as a whole". Apple insists that the commission is fair, as it also offers security and privacy benefits. Apple also highlighted that "85% of developers do not pay any commission at all." Marie also indicated that the lawsuit overlooks the value that Apple brings through its innovation and intellectual property.

Demetriou further dismissed claims that Apple should allow developers unrestricted access to its technology, calling it an unreasonable demand. The trial is expected to last seven weeks, with Apple's Chief Financial Officier, Ketan Parekh, set to testify later this week, where both sides will present their arguments. Apple has recently settled a Siri privacy lawsuit in the US by agreeing to pay $95 million in settlement.

Source: Reuters

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