Billion-Pound Lawsuit Against Apple Over App Store Opens in the UK

A trial opening on Monday, January 13, in London will decide whether US tech giant Apple abused its dominant position in the UK’s app store market.

The plaintiffs are seeking over one billion pounds in damages. The complaint, filed in May 2021, accuses Apple of violating European and UK competition laws by excluding alternative app stores from iOS devices like iPhones and iPads.

The plaintiffs argue that approximately 20 million Apple users may have been overcharged due to Apple’s ban on competing app store platforms.

The claim also targets the 30 percent surcharge that Apple imposes on apps purchased through its App Store, alleging that this fee is charged “at the expense of ordinary consumers.” The case has been brought by Rachael Kent, an academic from Kings College London, in collaboration with the law firm Hausfeld & Co. Apple, however, has dismissed the case as “meritless”.

The trial, expected to last seven weeks at the Competition Appeal Tribunal in London, centers on allegations that Apple leveraged its App Store to block competition, forcing users to rely on its ecosystem and inflate its profits.

Kent highlighted that the surcharge affects most apps, including in-app purchases, with exceptions for services like Deliveroo and Uber Eats, which offer physical products.

Kent suggests that any user who made app or subscription purchases in the British version of the App Store between October 1, 2015, and November 15, 2024, may be eligible for compensation. The plaintiffs are seeking an estimated £1.5 billion ($1.8 billion) in damages.

Under British law, this class action automatically includes all potentially affected individuals, who may receive compensation unless they choose to opt-out.

Apple, however, has defended its practices, citing a 2022 statement that 85 percent of apps on the App Store are free. The tech giant insists the lawsuit is meritless, reaffirming its commitment to consumers and emphasizing the benefits provided by the App Store.

Additionally, Apple argues that the 30% commission it charges is “very much in the mainstream of those charged by all other digital marketplaces.”

Kent emphasized the importance of collective actions in pushing companies to change, stating, “They’re responding to these investigations and also being told what to do. I don’t think they’re going to do it voluntarily, which I think is why it’s really important to bring these collective actions.”