Apple Faces £1.5 Billion UK Lawsuit Over App Store 'Overcharging'

Apple is heading to court in London on Monday to defend against a class-action lawsuit seeking £1.5 billion ($1.9 billion) in damages over alleged anti-competitive App Store practices in the UK.

app store blue banner uk fixed
Filed by King's College London academic Dr. Rachael Kent, the lawsuit claims Apple has violated UK and European competition laws by requiring iOS users to download apps exclusively through the App Store while charging developers a commission of up to 30% on purchases.

The legal action represents around 19.6 million UK iPhone and iPad users who may have been overcharged for apps and in-app purchases between October 2015 and November 2024. Under UK law, affected users are automatically included in the claim unless they opt out.

Kent argues that while the App Store was initially "a brilliant gateway" for services, it has become "the only gateway" for millions of consumers, with Apple acting as a monopolist by blocking access to alternative platforms that could offer better deals.

Apple has firmly rejected the allegations, calling the lawsuit "meritless," and says that its App Store commission rates are "very much in the mainstream" compared to other digital marketplaces. The company says that 85% of apps on the App Store are free, and many developers qualify for a reduced 15% commission rate.

The trial at the Competition Appeal Tribunal is expected to last seven weeks and is one of several legal challenges Apple faces globally regarding its App Store practices.

The company is also defending against a separate £785 million UK lawsuit related to developer fees and was recently fined €500 million ($538 million) by the European Commission for breaching digital competition rules relating to music streaming services.

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Top Rated Comments

vantelimus Avatar
10 months ago
More nonsense from people looking for an extortion payday.
Score: 17 Votes (Like | Disagree)
DelayedGratificationGene Avatar
10 months ago
This EU and UK bullying nonsense will abruptly stop under the new administration. Absolutely no way this will be tolerated.
Score: 13 Votes (Like | Disagree)
Unregistered 4U Avatar
10 months ago

Apple acting as a monopolist by blocking access to alternative platforms that could offer better deals.
This would only be true if, like a TRUE monopolist, Apple was:
1. Buying hardware producers and then shutting them down
2. Requiring that developers releasing applications for the iPhones ONLY release applications for the iPhone
3. Restricting carriers to only carrying the iPhone
and other things like that. Monopoly power allows companies to physically, literally restrict the existence of ANY competition. Not… whatever weak sauce they’re trying to define here.

As it is, for an iPhone user in the UK, the ONLY thing potentially blocking them from access to Android’s better deals is figuring out how to leave the Apple ecosystem, and the applications for doing that are FAR more robust today than previously. But, that would require them to understand that a “monopoly” definition that includes a company’s trademarked product names is not a “monopoly” it’s “products and services produced/provided BY that company”. If an Apple iPhone user doesn’t want to use the Apple iPhone App Store, it’s easy. Just don’t use an “Apple” anything and you’re in the clear.
Score: 12 Votes (Like | Disagree)
Apple Knowledge Navigator Avatar
10 months ago
My argument consistently would be, why is the iPhone setup this way but the Mac isn’t? I’m all for security, but giving people choice is importantly. Put as many warning messages as you want and make the user responsible.
Score: 11 Votes (Like | Disagree)
I7guy Avatar
10 months ago
Goof luck UK. Good luck Apple.
Score: 7 Votes (Like | Disagree)
Zest28 Avatar
10 months ago
Isn't the UK charging 45% to 47% in taxes for everything you earn over 125.000? Talk about overcharging.
Score: 7 Votes (Like | Disagree)