Apple is facing a £1.5bn ($1.8bn) class action lawsuit in the UK, accusing the company of imposing “excessive and unfair” charges on software downloaded from its App Store, according to the Financial Times.
Unless a settlement is reached, the trial is scheduled to begin on Monday, 13 January 2025, at the Competition Appeal Tribunal.
The case, initiated in 2022, alleges that Apple abuses its market position by charging commissions of up to 30% on App Store purchases.
The seven-week trial will include testimony from Apple’s newly appointed Chief Financial Officer, Kevan Parekh.
This case is part of a broader series of legal challenges facing Big Tech companies worldwide.
Similarly, in the U.S., the Department of Justice has accused Apple of stifling competition with its App Store policies.
The claimants, led by Rachael Kent, a lecturer at King’s College London, argue that Apple has established a monopoly by requiring developers to distribute their apps exclusively through its App Store.
They are seeking £1.5bn, claiming that the commissions are ultimately passed on to consumers who purchase content or digital services within the apps.
Lawyers for the claimants, Mark Hoskins KC and Tim Ward KC, are expected to argue that Apple’s profits are “exorbitant” and that commissions would be lower if software were available on third-party platforms.
Despite competition from Google’s Android, the claimants argue that Apple has solidified its market power within its ecosystem.
Apple has dismissed the lawsuit as “meritless,” asserting that its App Store commissions are in line with those of other digital marketplaces, as stated when the case was first launched.
The company also highlighted that most apps are free, and small businesses earning less than $1 million annually qualify for a discounted 15% commission.
Apple is expected to argue that the market has been defined too narrowly, focusing only on iOS apps, and that it does not dominate broader digital transaction and device markets.
The company is likely to defend its commission structure by highlighting its investments in the platform, including payments processing, developer tools, security, marketing, and curation.
