Apple Faces £1.5bn Lawsuit In UK for Alleged Overcharging on App store
Apple is set to face a £1.5 billion legal battle in London, where plaintiffs accuse the tech giant of violating UK and European competition laws. The case, which alleges monopolistic practices in the iOS ecosystem, could have profound implications for the company’s App Store operations.
The seven-week trial, scheduled at the Competition Appeal Tribunal, centers around Apple’s alleged exclusion of rival app stores, which plaintiffs claim has inflated prices for millions of users.
Allegations of Monopolistic Practices By Apple
The lawsuit, initially filed in May 2021, argues that Apple’s strict control over the iOS ecosystem unlawfully stifles competition by banning rival app stores from iPhones and iPads. This monopoly, plaintiffs allege, has resulted in overcharges affecting an estimated 20 million Apple users in the UK.
Central to the claims is Apple’s 30% commission on app purchases and in-app transactions made through the App Store. Critics, such as digital economy expert Rachael Kent from King’s College London, argue that this surcharge artificially drives up prices for digital goods.
“This 30% surcharge has a broad impact, covering popular apps like Tinder while exempting services offering physical goods, such as Uber Eats and Deliveroo,” Kent explained.
The plaintiffs are seeking £1.5 billion ($1.8 billion) in damages to be distributed to any UK-based user who purchased apps or subscriptions via the App Store between October 1, 2015, and November 15, 2024. British class action laws automatically include affected users unless they opt out.
Apple Defends Its Practices
Apple has rejected the lawsuit as baseless, emphasizing that its App Store commission aligns with industry standards. The company stated that 85% of apps on the platform are free, underscoring the value it delivers to developers and the digital economy in the UK.
“Apple’s practices are consistent with industry norms and have fostered innovation and economic growth,” a spokesperson said in a statement.
Apple Under Global Scrutiny
The London trial is not Apple’s first confrontation with regulators over its App Store policies. Globally, the company has faced investigations and lawsuits accusing it of restricting app developers’ access to alternative platforms.
The European Commission previously charged Apple with breaching competition laws by preventing developers from directing users to rival app stores. In response, Apple announced in August that iPhone and iPad users in the EU would be able to delete the App Store and opt for competing platforms. Critics, however, view this as a reactive move driven by regulatory pressure.
For Rachael Kent, this trial is a pivotal moment in holding tech giants accountable. “Apple only responds when pressured by regulators. Without these legal actions, we wouldn’t see progress,” Kent said.
The outcome of this trial could reshape how Apple manages its App Store policies globally. With billions in damages on the line and increasing regulatory scrutiny, the company’s future strategy may need to adapt to changing legal and consumer expectations.
