A high-stakes legal trial commenced on Monday to determine whether Apple has violated European and UK competition laws, with plaintiffs seeking damages exceeding one billion pounds. The case, initiated in May 2021, accuses Apple of unlawfully excluding competing app stores from its iOS ecosystem, including devices like iPhones and iPads.
The complaint, which could affect millions of Apple users, alleges that the company’s actions led to overcharging of approximately 20 million users due to its restriction on third-party app store platforms. At the core of the claim is a 30% surcharge Apple imposes on apps purchased through its App Store, which the plaintiffs argue harms ordinary consumers by inflating prices.
The case has been brought forward by Rachael Kent, a lecturer at Kings College London specializing in the digital economy, alongside the law firm Hausfeld & Co. Apple has dismissed the lawsuit as “meritless,” but the trial, expected to last seven weeks at the Competition Appeal Tribunal in London, will delve into the company’s practices and their impact on the market.
The plaintiffs assert that Apple’s exclusive control over the App Store forces users to rely on its platform for app downloads and in-app purchases, effectively stifling competition. Kent cited popular apps like Tinder as an example, where users are subject to the surcharge when making purchases. However, the surcharge does not apply to physical product-based apps, such as food delivery services like Deliveroo and Uber Eats.
Kent believes that any individual who made purchases or subscribed to services on the British version of the App Store between October 1, 2015, and November 15, 2024, may be entitled to compensation. The lawsuit seeks an estimated total of £1.5 billion ($1.8 billion) in damages.
Under British law, class action participants are automatically included unless they choose to opt out, meaning potentially millions of affected consumers could benefit from the outcome of the trial.
Apple, when contacted for comment, reiterated its stance from a 2022 statement, defending the App Store’s commission structure. “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 and Apple’s valuable technologies have delivered to the UK’s innovation economy,” the company said. Apple further maintained that its App Store fees are comparable to those of other digital marketplaces.
This lawsuit is just one of many legal challenges Apple has faced globally regarding its app store practices. The company is also embroiled in another ongoing investigation in Europe, with the European Commission accusing Apple of violating digital competition rules by restricting developers from promoting alternative channels outside the App Store.
In response to mounting pressure, Apple agreed in August to relax its rules, allowing iPhone and iPad users in the European Union to delete the App Store and use competing platforms. Kent believes this collective action is crucial for ensuring that Apple addresses these concerns. “They’re responding to these investigations and also being told what to do. I don’t think they’re going to do it voluntarily, which is why it’s really important to bring these collective actions,” she said.
The outcome of this trial could set a significant precedent for both the digital marketplace and consumer protection in the rapidly evolving tech industry.
