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Home » Apple Faces £1.5 Billion Lawsuit Over 30% App Store Commission in the UK

Apple Faces £1.5 Billion Lawsuit Over 30% App Store Commission in the UK

Joan Aimuengheuwa by Joan Aimuengheuwa
January 13, 2025
in Business
0
Apple Faces £1.5 Billion Lawsuit Over 30% App Store Commission in the UK
Source: Scott Olson/Getty Images

Source: Scott Olson/Getty Images

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Apple is defending itself in a London tribunal against a £1.5 billion lawsuit, alleging it misused its top spot in the market to impose a 30% commission on app developers, costs that were reportedly passed on to nearly 20 million iPhone and iPad users in the United Kingdom.

The lawsuit, led by Rachel Kent, a lecturer at King’s College London, claims Apple has exploited its control over the distribution of apps and in-app purchases to make excessive profits. The case, filed under Britain’s developing collective lawsuit system, is the first major trial of its kind targeting a tech giant in the country.

Kent’s legal team argues that Apple operates a monopoly by restricting app distribution exclusively to its App Store, leaving developers with no alternatives. They allege that the high commissions charged by Apple result in inflated costs for consumers. Mark Hoskins, representing Kent, stated in court filings that Apple holds “a 100% monopoly position” and enforces restrictive terms that limit competition.

Apple has rejected the accusations, labelling the case baseless. The company says that most app developers either pay no commission or benefit from reduced rates. 

Apple’s legal representative, Marie Demetriou, contends that the fees reflect the value provided by Apple’s iOS ecosystem, which she described as highly secure and innovative. She criticised the lawsuit for overlooking Apple’s intellectual property rights, framing the demand to open its space as “an unjust expropriation.”

This trial is expected to run for seven weeks and will include testimony from Apple’s Chief Financial Officer, Kevan Parekh. 

Meanwhile, Apple is also dealing with separate legal challenges in the UK, including a £785 million claim led by Professor Sean Ennis on behalf of app developers. 

This case accuses Apple of overcharging developers and will test the company across international storefronts.

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