Apple is accused of abusing its dominant position in the app market by charging app developers an unfair 30% commission through its App Store, allegedly costing British consumers up to £1.5 billion ($1.8 billion), a London tribunal heard on Monday.
The U.S. tech giant is facing a mass lawsuit on behalf of around 20 million iPhone and iPad users in the United Kingdom, who claim to have been overcharged for app purchases.
Apple denies the allegations, arguing that the case is meritless and overlooks the benefits of its integrated iOS operating system, which prioritizes security and privacy. The lawsuit is the first mass lawsuit against a tech company under Britain’s emerging class action-style regime, with several other cases awaiting trial.
A similar $1.1 billion lawsuit against Google over its app store commission will begin later in 2025.
The case, brought by British academic Rachael Kent, claims that Apple has made “exorbitant profits” by excluding competition in the app distribution and in-app purchase market. Kent’s lawyers argue that this monopoly allows Apple to impose restrictive terms and charge excessive commissions, which are ultimately passed on to consumers.
“Apple is not just dominant … it holds a 100% monopoly position,” said Mark Hoskins, Kent’s lawyer.
However, Apple counters that 85% of app developers do not pay any commission. The company’s lawyer, Marie Demetriou, argued that the commission reflects the benefits provided through Apple’s innovation in the iOS ecosystem.
Kent’s case, according to Demetriou, overlooks Apple’s intellectual property rights, describing the claim that Apple must allow developers to use its technology freely as “expropriation of property rights masquerading as competition.” The seven-week trial is expected to include testimony from Apple’s chief financial officer, Kevan Parekh, later this week.
