A landmark legal battle commenced Monday as Apple confronts a £1.5 billion class action lawsuit in the UK over allegations of “excessive and unfair” charges on its App Store downloads. The trial, set to span seven weeks in the Competition Appeal Tribunal, marks the first major tech antitrust class action to reach UK courts.
The iPhone manufacturer stands accused of abusing its dominant market position by imposing commissions of up to 30 per cent on App Store purchases. Apple’s newly appointed chief financial officer, Kevan Parekh, is scheduled to testify in what has become the latest in a series of global legal challenges facing tech giants.
The case, led by King’s College London lecturer Rachael Kent, represents millions of UK consumers who claim Apple has established a monopoly by requiring developers to distribute their iOS applications exclusively through the App Store. The claimants seek £1.5 billion in damages, arguing that these substantial commissions are ultimately passed on to consumers.
Legal representatives for the claimants, including Mark Hoskins KC and Tim Ward KC, are expected to argue that Apple’s profits from these commissions are “exorbitant” compared to potential rates in a more competitive marketplace. While Apple faces competition from Google’s Android operating system, the lawsuit contends that Apple maintains significant market power within its closed ecosystem.
Apple dismisses the allegations as “meritless,” maintaining that its commission structure aligns with industry standards. The company emphasises that most applications are free to download, and since 2020, smaller developers earning less than $1 million annually qualify for a reduced 15 per cent commission rate.
The trial’s outcome could set a significant precedent for numerous pending antitrust lawsuits against other tech behemoths, including Alphabet, Microsoft, and Meta. This case emerges amid increased regulatory scrutiny of Big Tech, including a US Department of Justice case against Apple’s App Store practices.
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