Apple (AAPL, Financial) is currently facing a significant class action lawsuit in the UK, as proceedings have commenced in the Competition Appeal Tribunal. This marks the first in a series of antitrust lawsuits against major tech companies in the country. The lawsuit accuses Apple of charging "excessive and unfair" fees for software downloads via its App Store, with potential legal claims amounting to £1.5 billion ($1.83 billion).
Originally filed in 2021, the lawsuit claims that Apple's 30% commission on app sales constitutes an abuse of its dominant position. The case is led by Rachel Kent, a lecturer at King's College London, who argues that Apple enforces a monopoly by compelling developers to use the company's App Store for app distribution. The plaintiffs are seeking £1.5 billion, asserting that Apple's high commissions are passed on to consumers who download software and purchase in-app content or digital services.
The plaintiff's legal team is expected to argue that Apple has reaped "excessive" profits, suggesting that if third-party platforms could compete with the App Store, commission rates would be much lower. Apple, however, claims the lawsuit is unfounded and notes that its commission rates are in line with those charged by other digital marketplaces. Additionally, Apple highlights that most apps are free, and developers earning under $1 million annually qualify for reduced commission rates.
The case is expected to last approximately seven weeks, adding to Apple's ongoing legal battles in the UK. Last December, Apple unsuccessfully attempted to halt another class action lawsuit concerning its App Store commissions.
