UK trial over Apple's App Store fees seeks $1.83B fine
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The UK's Competition Appeal Tribunal will hear the case. A four-year-old class action lawsuit filed in the UK again Apple's App Store fees will finally go to trial on Monday, January 13 — seeking up to 1.5 billion pounds ($1.83 billion) in potential damages.
Claimants in the case, led by digital economy specialist and lecturer at King's College Dr. Rachael Kent, are fighting the up to 30 percent commission Apple collections for in-app purchases (IAP). The lawsuit charges Apple is running its App Store as an illegal monopoly.
The suit says Apple forces developers to pass on the commission costs to consumers in the form of higher app prices. Apple has called the lawsuit "meritless" in court filings. Kent said in a statement that Apple has "no right" to charge such a significant commission fee — "particularly when Apple itself is blocking our access to platforms and developers that are able to offer us much better deals.".
"Apple achieves this by slapping unjustified charges on its users," she said in her filing, pointing out that global App Store revenues topped $15 billion in 2021. "It would not be able to impose these exorbitant charges if competitor platforms and payment systems were allowed to compete on its devices," the brief noted.
"Apple guards access to the world of apps jealously," Kent said. "This is the behavior of a monopolist, and is unacceptable." The case is believed to bethe first of its kind for a Big Tech firm in the UK. In its response, the company said in a statement that "the commission charged by the App Store is very much in the mainstream of those charged by all other digital marketplaces. In fact, 84 percent of apps on the App Store are free, and developers pay Apple nothing.".
