A trial opened on January 13 in London to determine whether Apple abused its dominant position in the UK’s app store market, with plaintiffs seeking over one billion pounds in damages.
The lawsuit, filed in May 2021, accuses Apple of violating European and UK competition laws by blocking other app stores from iOS devices like iPhones and iPads. The plaintiffs argue that approximately 20 million Apple users may have been overcharged due to the company’s ban on rival app store platforms.
The complaint also challenges the 30% commission Apple charges on app purchases through its App Store, claiming it harms consumers. The case is led by Rachael Kent, an academic from King’s College London, and the law firm Hausfeld & Co. Apple has dismissed the lawsuit as “meritless.”
The trial, which is expected to last seven weeks at the Competition Appeal Tribunal in London, centers on allegations that Apple used its App Store to exclude competitors, forcing users to rely exclusively on its platform, thus boosting its profits. Kent, an expert in the digital economy, highlighted how the surcharge impacts many apps, including in-app purchases, but does not apply to platforms offering physical products like Deliveroo and Uber Eats.
Kent believes that anyone who purchased apps or subscriptions from the UK App Store between October 1, 2015, and November 15, 2024, may be entitled to compensation. The plaintiffs are seeking an estimated £1.5 billion ($1.8 billion) in damages.
Under UK law, this class action automatically includes all potentially affected individuals, who will be eligible for compensation unless they choose to opt out.
Apple has defended itself by citing a 2022 statement that 85% of apps on the App Store are free. The company insists the lawsuit lacks merit and stands by the value it provides to consumers through its App Store, arguing that its commission is in line with other digital marketplaces.
Apple is also facing increased scrutiny globally over its App Store practices. The company is involved in a separate £785 million lawsuit concerning rates charged to app developers. Additionally, the European Commission accused Apple in June of breaching digital competition rules by preventing developers from directing consumers to alternative channels outside the App Store. In response, Apple announced in August that iPhone and iPad users in the EU could delete the App Store and use competing platforms.
Kent emphasized the importance of collective actions in pressuring 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 is why it’s really important to bring these collective actions.”
