UK Apple users overcharged by almost $2 billion, class action lawsuit claims

Apple is being accused of taking advantage of its dominant position by charging a 30% commission on app sales. This, according to a London tribunal, led to UK consumers being overcharged by as much as £1.5 billion ($1.8 billion).

A class action lawsuit, representing around 20 million iPhone and iPad users in the UK, claims that Apple's actions made app prices unnecessarily high, Reuters reports. In response, Apple argues that the case lacks merit and fails to acknowledge the advantages of its iOS system, particularly regarding security and privacy.

The case being heard at the Competition Appeal Tribunal in London marks the first mass lawsuit under the UK's emerging class action framework, with other similar cases against major tech companies awaiting trial. It's going to be a bumpy road ahead, folks!

A related $1.1 billion lawsuit against Google over its Play Store commission structure is scheduled to begin in 2025. Apple is also dealing with separate legal action from app developers, while other tech giants such as Google, Meta, and Amazon are involved in their own significant lawsuits in the UK.

Rachael Kent, the British academic leading the lawsuit, argues that Apple has profited disproportionately by creating a monopoly on app distribution and in-app purchases. According to her legal team, this monopoly allows Apple to impose restrictive terms on app developers, ultimately passing the financial burden on to consumers. Kent's lawyer, Mark Hoskins, stated in court that Apple effectively holds a "100% monopoly position".

Apple, however, counters that 85% of developers pay no commission at all, asserting that the commission reflects the considerable benefits the company provides through the iOS ecosystem. Apple's lawyer, Marie Demetriou, argued in court that Kent's case overlooks Apple's intellectual property rights, describing the demand for unrestricted use of its technology as "expropriation of property rights masquerading as competition".

The trial, expected to span many weeks onwards, will include testimony from Apple's chief financial officer, Kevan Parekh, later this week.