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 SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Less Than Two Months Away: Everything We Know

Thursday July 25, 2024 5:43 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
icloud private relay outage

iCloud Private Relay Experiencing Outage

Thursday July 25, 2024 3:18 pm PDT by
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...

Top Rated Comments

djcerla Avatar
42 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
42 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
42 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
42 months ago
Embarrassed I live in the UK with this one.
Score: 24 Votes (Like | Disagree)
_Spinn_ Avatar
42 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
42 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)