Apple was already facing a $1B lawsuit on behalf of British developers, but is now up against an even larger one on behalf of app buyers in the UK.
Both antitrust lawsuits have the same basis – that Apple is abusing its monopolistic control over the sale of iPhone apps to charge excessive commissions …
$1B developer lawsuit
The billion dollar lawsuit filed on behalf of developers was filed in the summer of 2023. Apple twice tried to have it thrown out, but both attempts were rejected.
The core argument is that, until recently, the only way a developer could sell an iPhone app and in-app content was through the official App Store. This gave Apple monopolistic powers over the same of iOS apps, and allowed the company to set its own commission levels which developers were forced to accept.
That has changed to a certain extent in both the EU and US, but not yet in the UK. Apple initially tried to argue that a British court had jurisdiction given many UK apps were sold in the US and elsewhere, but judges rejected this argument as the impact was felt in the UK. A second attempt to have the case dismissed failed last month.
$1.8B consumer lawsuit
The Guardian reports that Apple now faces a second lawsuit, this time alleging that consumers were overcharged as a result of developers needing to cover Apple’s excessing commissions.
Apple will appear in court on Monday accused of overcharging UK customers through its App Store […] The claim is being brought against the company by Dr Rachael Kent, an academic at King’s College London, on behalf of herself and about 19.6 million other iPhone and iPad users in the UK […]
Kent said: “Apple has no right to charge us a 30% rent for so much of what we pay for on our phones – particularly when Apple itself is blocking our access to platforms and developers that are able to offer us much better deals. This is why I am taking this action.”
Apple rejects the claim, saying its commissions are in line with industry norms, and small developers pay even less.
“The commission charged by the App Store are very much in the mainstream of those charged by all other digital marketplaces. In fact, 85% of apps on the App Store are free and developers pay Apple nothing. And for the vast majority of developers who do pay Apple a commission because they are selling a digital good or service, they are eligible for a commission rate of 15%.”
The case began this morning, and is expected to last seven weeks.
Photo of Battersea Power Station, home to Apple’s UK headquarters: Laurence Mackman/CC4.0
FTC: We use income earning auto affiliate links. More.
