In addition to a previous $1B lawsuit regarding British developers, Apple is now embroiled in an even larger case concerning app purchasers in the UK.
Both antitrust lawsuits share a common premise – they allege that Apple is exploiting its monopolistic dominance in the app sales market to impose exorbitant commission fees…
$1B Developer Lawsuit
The billion-dollar lawsuit representing developers was initiated in the summer of 2023. Apple attempted to dismiss the case on two occasions, both of which were denied.
The central contention is that, until recently, the sole avenue for developers to sell iPhone apps and in-app purchases was through the official App Store. This arrangement endowed Apple with monopolistic authority over the sale of iOS applications, granting the company the power to dictate commission rates that developers had no choice but to accept.
While there has been some shift in both the EU and U.S. regarding this issue, the situation remains unchanged in the UK. Apple initially contended that a British court lacked jurisdiction because many UK apps were sold in the U.S. and other markets, but judges dismissed this argument, noting that the ramifications were felt within the UK. A second attempt to dismiss the lawsuit also failed last month.
$1.8B Consumer Lawsuit
According to The Guardian, Apple is now facing a second lawsuit that claims consumers were overcharged due to developers needing to account for Apple’s excessive commissions.
Apple is set to appear in court on Monday, accused of overcharging UK customers through its App Store. The case is being brought against the company by Dr. Rachael Kent, an academic from King’s College London, representing herself and approximately 19.6 million other iPhone and iPad users in the UK.
Kent remarked: “Apple has no right to charge us a 30% fee on a significant portion of what we buy on our phones, especially when Apple itself is obstructing our access to platforms and developers that could provide us with far better deals. This is the reason I am pursuing this action.”
Apple has refuted the claims, arguing that its commission rates align with industry standards, and that smaller developers often pay even less.
“The commission fees imposed by the App Store are generally consistent with those charged by other digital marketplaces. In fact, 85% of the apps available on the App Store are free, with developers incurring no costs. For the majority of developers who do pay a commission for selling a digital good or service, they qualify for a reduced rate of 15%.”
The trial commenced this morning and is anticipated to continue for seven weeks.
Image of Battersea Power Station, home to Apple’s UK headquarters: Laurence Mackman/CC4.0
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