UK Class Action Accuses Apple of Breaking Competition Law by Overcharging for Apps

A new legal case filed with the U.K.'s Competition Appeal Tribunal has accused Apple of breaching competition law by overcharging nearly 20 million customers for App Store purchases.

app store blue banner uk
The collective action case alleges Apple's 30% commission on app sales and consumers' forced use of its own payment processing system generates "unlawfully excessive levels of profit," and calls for the company to compensate iPhone and iPad users in the U.K. for years of alleged overcharging, with damages of up to £1.5 billion being sought.

The collective action has been brought by Dr Rachael Kent, an expert in the digital economy and a lecturer at King's College, London, who claims that because the ‌App Store‌ is the only way to get apps on to an ‌iPhone‌ or ‌iPad‌, it is acting like a monopoly.

"The App Store was a brilliant gateway for a range of interesting and innovative services that millions of us find useful, myself included," she said. "But 13 years after its launch, it has become the only gateway for millions of consumers.

"Apple guards access to the world of apps jealously, and charges entry and usage fees that are completely unjustified. This is the behavior of a monopolist and is unacceptable."

In opt-out cases such as this, the claim can be brought on behalf of a defined group, and aggregate damages awarded to the group, without the need to identify all the individual claimants and specify their losses. Claimants within a class are automatically included in an action unless they take specific steps to opt-out.

On this basis, anyone in the U.K. who has bought paid apps, paid subscriptions, or other in-app purchases on an ‌iPhone‌ or ‌iPad‌ since October 2015 is included in the claim. The rest of the team behind the case includes law firm Hausfeld and Co and Vannin Capital. However, the collective action needs to be approved by the tribunal before proceeding.

Apple in a statement called the lawsuit "meritless."

"We believe this lawsuit is meritless and welcome the opportunity to discuss with the court our unwavering commitment to consumers and the many benefits the App Store has delivered to the UK's innovation economy," Apple said. "The commission charged by the App Store is very much in the mainstream of those charged by all other digital marketplaces. In fact, 84% of apps on the App Store are free and developers pay Apple nothing. And for the vast majority of developers who do pay Apple a commission because they are selling a digital good or service, they are eligible for a commission rate of 15%."

The case echoes similar allegations made in the ongoing legal battle between Apple and Epic Games, in which Epic alleges that the ‌App Store‌ and associated developer commission rates are anti-competitive and monopolistic.

In April, Apple was also charged by the European Commission with abusing its dominant position in the music streaming market with regard to ‌App Store‌ rules on in-app payments. The charges followed a complaint by rival streaming service Spotify.

Popular Stories

iphone 16 display

iPhone 17's Scratch Resistant Anti-Reflective Display Coating Canceled

Monday April 28, 2025 12:48 pm PDT by
Apple may have canceled the super scratch resistant anti-reflective display coating that it planned to use for the iPhone 17 Pro models, according to a source with reliable information that spoke to MacRumors. Last spring, Weibo leaker Instant Digital suggested Apple was working on a new anti-reflective display layer that was more scratch resistant than the Ceramic Shield. We haven't heard...
apple watch ultra yellow

What's Next for the Apple Watch Ultra 3 and Apple Watch SE 3

Friday April 25, 2025 2:44 pm PDT by
This week marks the 10th anniversary of the Apple Watch, which launched on April 24, 2015. Yesterday, we recapped features rumored for the Apple Watch Series 11, but since 2015, the Apple Watch has also branched out into the Apple Watch Ultra and the Apple Watch SE, so we thought we'd take a look at what's next for those product lines, too. 2025 Apple Watch Ultra 3 Apple didn't update the...
iPhone 17 Air Pastel Feature

iPhone 17 Reaches Key Milestone Ahead of Mass Production

Monday April 28, 2025 8:44 am PDT by
Apple has completed Engineering Validation Testing (EVT) for at least one iPhone 17 model, according to a paywalled preview of an upcoming DigiTimes report. iPhone 17 Air mockup based on rumored design The EVT stage involves Apple testing iPhone 17 prototypes to ensure the hardware works as expected. There are still DVT (Design Validation Test) and PVT (Production Validation Test) stages to...
Beyond iPhone 13 Better Blue

20th Anniversary iPhone Likely to Be Made in China Due to 'Extraordinarily Complex' Design

Monday April 28, 2025 4:29 am PDT by
Apple will likely manufacture its 20th anniversary iPhone models in China, despite broader efforts to shift production to India, according to Bloomberg's Mark Gurman. In 2027, Apple is planning a "major shake-up" for the iPhone lineup to mark two decades since the original model launched. Gurman's previous reporting indicates the company will introduce a foldable iPhone alongside a "bold"...
iPhone 17 Air Pastel Feature

iPhone 17 Air Launching Later This Year With These 16 New Features

Thursday April 24, 2025 8:24 am PDT by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the ultra-thin device. Overall, the iPhone 17 Air sounds like a mixed bag. While the device is expected to have an impressively thin and light design, rumors indicate it will have some compromises compared to iPhone 17 Pro models, including only a single rear camera, a...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 13 New Features

Wednesday April 23, 2025 8:31 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
iphone 17 air iphone 16 pro

iPhone 17 Air USB-C Port May Have This Unusual Design Quirk

Wednesday April 30, 2025 3:59 am PDT by
Apple is preparing to launch a dramatically thinner iPhone this September, and if recent leaks are anything to go by, the so-called iPhone 17 Air could boast one of the most radical design shifts in recent years. iPhone 17 Air dummy model alongside iPhone 16 Pro (credit: AppleTrack) At just 5.5mm thick (excluding a slightly raised camera bump), the 6.6-inch iPhone 17 Air is expected to become ...

Top Rated Comments

djcerla Avatar
52 months ago
30% is industry standard, and Apple has a minority share of phones in the UK. Hardly a "monopoly".

These actions will end up ruining the iOS experience for consumers, which is at present far superior compared to the competitor's.
Score: 32 Votes (Like | Disagree)
_Spinn_ Avatar
52 months ago
Class action lawsuits like this one are a total joke and usually just a way to enrich the lawyers.
Score: 26 Votes (Like | Disagree)
Hermes Monster Avatar
52 months ago
As a Brit, this fills me with absolute cringe. It’s nothing more than a cash grab, and I hope it gets shot down in flames
Score: 26 Votes (Like | Disagree)
markfc Avatar
52 months ago
Embarrassed I live in the UK with this one.
Score: 24 Votes (Like | Disagree)
_Spinn_ Avatar
52 months ago

These actions will end up ruining the iOS experience for consumers, which is at present leaps and bounds superior to the competition's.
Exactly! If efforts like this succeed I think someone should start a class action lawsuit against these people for ruining the ecosystem Apple users paid for. If I wanted Android I would have paid for an Android device. I bought my iPhone knowing full well what I was getting.
Score: 22 Votes (Like | Disagree)
Kierkegaarden Avatar
52 months ago
Wow. Is a 30% sales commission really considered an “unlawfully excessive amount of profit” in the UK? What is a lawful amount of profit?

And how exactly did Apple overcharge? Doesn’t the developer set the price?

Sounds like a lawyer that just wants publicity, at any cost.
Score: 18 Votes (Like | Disagree)