Apple defended itself in a London trial Tuesday against a £1.5 billion ($1.8 billion) lawsuit alleging the tech giant abused its dominance in the iOS app market by imposing excessive commission fees of up to 30% on third-party developers.

The claim, led by class representative Rachael Kent on behalf of nearly 20 million U.K. iPhone and iPad users, is the first collective action against a major tech company to reach trial in the U.K.

Apple’s Defense: Market Competition and Platform Benefits

Apple’s counsel, Marie Demetriou KC of Brick Court Chambers, argued before the Competition Appeal Tribunal that the claim overlooks the benefits users and developers receive from the App Store. Apple’s centralized system, Demetriou said, is a cornerstone of its success, providing consumers with a secure, high-quality platform while enabling developers to create apps with innovative tools and services.

Demetriou dismissed allegations of restrictive practices, saying Apple’s conditions on developers are not constraints but permissions that allow them to use Apple’s proprietary tools and technology. She added that competition law does not require the tribunal to decide whether Apple’s business model is superior to its rivals, stating, “Competition law favors a market outcome, in which competitors design the product they think will sell best.”

Allegations of Market Abuse

Kent’s case centers on the claim that Apple’s commission fees unfairly inflate prices for iOS users. Her lawyers argue that Apple’s dominance in the iOS app distribution market—where it has maintained 100% market share since the App Store’s launch in 2007—has enabled the company to impose exorbitant fees and restrictive terms on developers.

Kent’s experts estimate these fees cost U.K. App Store users up to £1.5 billion between October 2015 and November 2023. “Apple’s dominance is absolutely clear-cut,” Kent’s counsel, Mark Hoskins KC, told the tribunal, adding that Apple has “eliminated all other rivals” for app distribution to iOS users.

Apple Rebuts Claims of Consumer Harm

Apple disputes the claimants’ assertions, stating that developers do not pass on commission reductions to consumers. The company contends that Kent’s case relies on an overly narrow market definition that excludes competition from other mobile operating systems like Android. Apple also emphasized its intense competition with device makers like Samsung and Google, which it argues constrains its App Store conduct.

Apple maintains that its fees reflect the substantial investment required to maintain its platform, which enhances privacy, security, and overall user experience.

Broader Implications

The case marks a significant test for collective actions targeting Big Tech in the U.K., with potential ripple effects for similar claims against companies like Google and Meta. Apple also faces a separate lawsuit brought on behalf of app developers over its App Store commissions.

The trial, expected to last seven weeks, resumes Wednesday.