Apple, the tech giant, is facing a significant legal challenge in the UK as a £1.5 billion ($1.8 billion) class-action lawsuit commenced at London’s Competition Appeal Tribunal. The case, which represents approximately 19.6 million UK iPhone and iPad users, alleges that the company violated UK and European competition laws through its App Store practices.
Dr. Rachael Kent, an academic from King’s College London, is leading the legal action, claiming that Apple has made “exorbitant profits” by excluding all competition for the distribution of apps and in-app purchases. The lawsuit covers purchases made between October 2015 and November 2024, with affected users automatically included unless they opt out under UK law.
At the core of the dispute is Apple’s requirement that iOS users download apps exclusively through the App Store, where the company charges developers a commission of up to 30% on purchases. The lawsuit argues that these costs are ultimately passed on to consumers, resulting in inflated prices for apps and in-app purchases.
Apple has firmly rejected these allegations, describing the lawsuit as “meritless” and defending its practices by stating that its commission rates align with other digital marketplaces. The company emphasizes that 85% of apps on the App Store are free, and many developers qualify for a reduced 15% commission rate.
This legal challenge is part of a broader pattern of scrutiny facing Apple’s App Store practices. The company was recently fined €500 million by the European Commission for breaching digital competition rules related to music streaming services. Additionally, Apple is defending against another £785 million UK lawsuit concerning developer fees.
Key details of the case include:
- The trial is expected to last several weeks
- Apple’s finance chief, Kevan Parekh, is scheduled to testify
- The company’s 2021 App Store revenue reached $15 billion
- The lawsuit alleges these revenues were possible only due to “unjustified charges”
The case marks a significant milestone as the first mass lawsuit against a tech giant to reach trial under Britain’s expanding class action-style regime. The outcome could potentially lead to changes in how digital marketplaces operate in the UK.
Similar legal challenges are emerging across the tech industry, with Google facing a $1.1 billion case regarding Play Store commissions scheduled for 2025. Meta and Amazon are also confronting high-value mass lawsuits in Britain, indicating a broader trend of increased scrutiny over digital marketplace practices.
