Apple (AAPL, Financial) is facing a collective lawsuit in the UK, accusing the tech giant of using its App Store to exploit its market dominance and generate excessive profits. The lawsuit, filed in the Competition Appeal Tribunal in London, claims Apple charges overly high commissions on products sold through its App Store, affecting millions of iPhone and iPad users. Apple's stance is that its commission fees are fair and reasonable.
The lead plaintiff's attorney, Rachael Kent, anticipates that Apple could be liable for over £1.5 billion ($1.8 billion) in compensation for UK users who purchased apps or subscription services on Apple devices since October 2015. Previously, similar allegations have been directed at Google parent Alphabet (GOOGL) over Play Store charges, and Meta Platforms (META) regarding personal data usage.
Apple's lawyers argue the company has not abused its dominant market position, and its commissions are justified. They emphasize that most developers do not pay any fees and are eligible for a 15% commission rate. Additionally, they note that over 90% of business activity within the iOS ecosystem is not subject to Apple's commission.
