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Apple stands accused of abusing its market dominance by charging excessive commissions to app developers, costing U.K. consumers up to £1.5 billion ($1.8 billion), as the first U.K. class action against a Big Tech company began Monday.

Allegations of Market Domination

The case, brought before the Competition Appeal Tribunal (CAT), centers on claims that Apple’s App Store policies stifle competition, allowing the company to impose commissions of up to 30% on app developers. Lawyers for 19.6 million U.K. consumers, represented by Professor Rachael Kent, argue that these fees are passed on to users through inflated costs for in-app purchases and subscriptions.

Mark Hoskins KC, representing Kent, asserted that Apple’s control over the iOS app distribution market eliminates competition. "Apple has had 100% of the iOS market share since the App Store’s launch in 2007," he told the tribunal.

Developers Face "Unfair" Restrictions

Kent’s legal team claims Apple forces developers to use its proprietary App Store Payment System and comply with restrictive terms to distribute their apps. These provisions, according to Hoskins, block developers and consumers from challenging Apple’s pricing structure.

"There is no legitimate pro-competitive reason for excessive profits of this scale," Kent’s lawyers argued in court documents, accusing Apple of leveraging its dominance to generate "exorbitant profits."

Apple’s Defense: Competition and Market Scope

Apple counters that Kent’s claims rely on an overly narrow market definition focused solely on iOS apps. The company also argues it faces robust competition from other mobile device makers, which limits its ability to dictate terms.

"Developers do not pass on reductions in commission rates to iOS device users," Apple said in court filings, adding that consumers have suffered no actual financial loss.

A Landmark Test Case

Kent’s claim is the first of several collective actions targeting tech giants at the CAT, with others lodged against companies such as Meta and Google. These cases, collectively seeking billions in damages, allege anti-competitive practices and exploitation of market power.

The Apple lawsuit, expected to last seven weeks, is seen as a bellwether for future claims against major tech companies.

Legal Teams Representing Both Sides

Kent is represented by a team from Brick Court Chambers, Monckton Chambers, and Hausfeld LLP. Apple is defended by attorneys from Gibson Dunn & Crutcher LLP, alongside barristers from Brick Court Chambers and Blackstone Chambers.