Apple is facing a $1.8 billion class-action lawsuit in the UK over allegations that its App Store policies unfairly charge excessive commissions to app developers. The lawsuit, led by Dr. Rachael Kent, a digital economy expert at King’s College London, accuses the tech giant of abusing its dominant position in the mobile app market to enforce high fees and stifle competition.
The legal claim asserts that Apple’s App Store fees, which can reach up to 30% of developers’ revenues, inflate costs for app developers and consumers alike. It alleges that these policies create barriers for smaller developers, limiting innovation and choice within the app ecosystem. The case represents millions of UK consumers who have downloaded apps or made in-app purchases, seeking compensation for what the lawsuit claims are unjustifiable charges.
Apple has consistently defended its App Store practices, arguing that its fees cover the cost of maintaining a secure and reliable platform. The company emphasises that its ecosystem enables developers to reach a vast global audience and ensures a high standard of security for users. In a statement, Apple indicated it would vigorously contest the lawsuit, reiterating its position that the App Store delivers significant value to both developers and consumers.
The case adds to growing global scrutiny of Apple’s App Store policies. Regulators and lawmakers in multiple countries, including the United States and the European Union, have investigated Apple for potential anti-competitive behaviour. The UK lawsuit could influence broader debates about the power of tech giants and their impact on consumers and businesses.
If successful, the lawsuit could set a precedent for how app marketplaces are regulated and reshape the financial dynamics between platform operators and app developers. Legal experts note that such cases reflect increasing efforts to hold major tech companies accountable for their market influence and practices.
The UK Competition Appeal Tribunal will determine whether the lawsuit can proceed as a collective action, potentially signalling a significant shift in the regulatory landscape for digital platforms.
