Apple will face a £1.5 billion class action lawsuit in Britain, alleging it charges “excessive and unfair” fees for software downloaded from the App Store. Financial times.
Unless a last-minute settlement is reached, the trial is expected to begin at the Competition Appeal Tribunal on Monday 13 January 2025.
The case, first filed in 2022, accuses Apple of abusing its market position by charging commissions of up to 30% on App Store purchases.
The seven-week trial will feature testimonials from Apple’s newly appointed chief financial officer, Kevan Parekh.
This case is part of a series of legal challenges facing Big Tech companies worldwide.
Similarly, in the US, the Justice Department has accused Apple of stifling competition with its App Store rules.
Antitrust lawyers and the litigation finance industry are closely watching the proceedings to assess the potential success of other antitrust cases against tech giants such as Alphabet, Microsoft and Meta.
The plaintiffs, led by Rachael Kent, a lecturer at King’s College London, allege that Apple has created a monopoly by forcing developers to distribute their apps exclusively through the App Store.
They are seeking £1.5 billion and claim the commissions are passed on to consumers who purchase content or digital services within the apps.
The plaintiffs’ lawyers, Mark Hoskins KC and Tim Ward KC, are expected to argue that Apple’s profits are “exorbitant” and that commissions would be lower if software were available on third-party platforms.
Despite competition from Google’s Android, plaintiffs argue that Apple has entrenched market power within its ecosystem.
Apple has dismissed the lawsuit as “meritless” and says its App Store commissions are in line with those of other digital marketplaces, the company said when the case was launched.
The company emphasized that most apps are free and that small businesses making less than $1 million annually are eligible for a 15% discounted commission.
Apple is expected to argue that the market is too narrowly defined because it only includes iOS apps and that it is not dominant in the broader digital transaction and device markets.
Apple will likely defend its commission by citing investments in its platform, including payment processing, developer tools, security, marketing and management.
“Apple’s $1.8 Billion Class Action Litigation Gets Started in Britain” was originally created and published by Verdict, a brand owned by GlobalData.
The information on this site has been included in good faith for general information purposes only. It is not intended to amount to advice on which reliance should be placed and we make no representation, warranty or guarantee, express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking or refraining from any action on the basis of the content on our site.
