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 17 pro asherdipps

iPhone 17 Pro Max Rumors Allegedly Refer to 'iPhone 17 Ultra' Model

Friday March 14, 2025 7:56 am PDT by
If you've been following iPhone rumors over the last few years, you may remember reading reports that Apple flirted with the idea of introducing a super high-end "Ultra" model that would either replace its Pro Max device or sit above it in Apple's smartphone hirearchy. These reports appeared in the pre-launch iPhone 15 and iPhone 16 rumor cycles, but ultimately came to nothing. Now though, the...
ios 18 4 carplay

Apple Upgrades CarPlay in Two Ways

Wednesday March 12, 2025 6:05 am PDT by
The upcoming iOS 18.4 update for the iPhone includes a smaller but meaningful improvement for Apple's in-car iPhone mirroring system CarPlay. Specifically, CarPlay now shows a third row of icons, up from two rows previously. However, this change is only visible in vehicles with a larger center display. For example, a MacRumors Forums member noticed the change in a Toyota Tundra with a...
airpods pro 2 gradient

AirPods Pro 3 Launch Now Just Months Away: Here's What We Know

Tuesday March 11, 2025 3:26 am PDT by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as excellent for...
iPhone 17 Air Size Feature

Ultra-Thin 'iPhone 17 Air' Rumored to Include These 12 Features

Saturday March 15, 2025 10:50 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...
apple surveyor app

Apple Launches 'Surveyor' App for Apple Maps Data Collection

Friday March 14, 2025 10:38 am PDT by
Apple today launched a new app called Surveyor, which is designed to allow users to collect data like images of street signs and roadside details to improve Apple Maps. The app is not public facing and appears to be for use with companies that Apple partners with to assign mapping tasks. Downloading the app and opening it up directs users to "Open Partner App" to choose a task. Tapping on...
iOS 19 visionOS UI Elements

iOS 19 to Have Some of the 'Biggest' Design Changes in iPhone's History

Sunday March 16, 2025 10:35 am PDT by
Apple is planning some of the "biggest iOS and macOS redesigns in its history," according to Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman reiterated that iOS 19 will have a visionOS-like design with more transparent interfaces:The new interfaces will adopt the design principles introduced in visionOS, the software for Apple's Vision Pro headset. That includes greater...
Apple Intelligence Comes Under Fire Feature

Apple Reassures Siri Team Members Feeling Disappointed and Embarrassed by Apple Intelligence Delay

Friday March 14, 2025 11:45 am PDT by
Apple is reassuring employees on the Siri team who may be feeling demotivated by the recent Siri delays and the bad press surrounding the company's decisions, reports Bloomberg. In a Siri team meeting, Apple senior director Robby Walker acknowledged that employees might be feeling "angry, disappointed, burned out and embarrassed" following the Siri delay, but he praised the hard work of...
Sad Siri Feature

Kuo: Cook Should Personally Address Siri Apple Intelligence Failure

Thursday March 13, 2025 4:02 pm PDT by
Apple made a major misstep with the way that it handled the delay of Apple Intelligence features for Siri, Apple analyst Ming-Chi Kuo said today. Announcing the delay through a press statement was a bad decision, and Apple should instead have gone through official channels. Kuo referenced the well-known "Antennagate" PR crisis when the iPhone 4 launched in 2010, and the way that then Apple...
iOS 18

12 New Things Your iPhone Can Do in iOS 18.4

Monday March 10, 2025 9:28 am PDT by
Apple is set to release iOS 18.4 in early April, bringing further refinements to Apple Intelligence features, a neat new capability to iPhone 15 Pro devices, new emoji, and more. While not quite as packed with new features as Apple's preceding iOS 18 point releases, iOS 18.4 still introduces enhancements that aim to make your iPhone smarter and more intuitive. Below, we've listed 12 new...

Top Rated Comments

djcerla Avatar
50 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
50 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
50 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
50 months ago
Embarrassed I live in the UK with this one.
Score: 24 Votes (Like | Disagree)
_Spinn_ Avatar
50 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
50 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)