Apple is set to face a £1.5bn ($1.8bn) class action lawsuit in the UK, alleging it levies “excessive and unfair” charges on software downloaded from its App Store, reported the Financial Times.
Unless a last-minute settlement is reached, the trial is anticipated to commence on Monday, 13 January 2025, at the Competition Appeal Tribunal.
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The case, which was first launched in 2022, accuses Apple of abusing its market position by charging commissions up to 30% on App Store purchases.
The seven-week trial will feature testimony from Apple’s newly appointed chief financial officer, Kevan Parekh.
This case is part of a series of legal challenges Big Tech companies face globally.
Similarly, in the US, the Department of Justice has accused Apple of stifling competition with its App Store rules.
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By GlobalDataAntitrust lawyers and the litigation funding industry are closely watching the proceedings to assess the potential success of other antitrust lawsuits against tech giants such as Alphabet, Microsoft, and Meta.
The claimants, led by Rachael Kent, a lecturer at King’s College London, argue that Apple has created a monopoly by forcing developers to distribute their apps exclusively through its App Store.
They are seeking £1.5bn, claiming that the commissions are passed on to consumers who purchase content or digital services within the apps.
Lawyers for the claimants, Mark Hoskins KC and Tim Ward KC, are expected to argue that Apple’s profits are “exorbitant” and that commissions would be lower if software were available on third-party platforms.
Despite competition from Google’s Android, the claimants contend Apple has entrenched market power within its ecosystem.
Apple has dismissed the lawsuit as “meritless,” stating that its App Store commissions align with those of other digital marketplaces, it said when the case was launched.
The company highlighted that most apps are free and that small businesses earning less than $1m annually qualify for a discounted 15% commission.
Apple is expected to argue that the market has been defined too narrowly as only including iOS apps and that it is not dominant in broader digital transaction and device markets.
Apple is likely to defend its commission by citing investments in its platform, including payments processing, developer tools, security, marketing, and curation.
