Apple Faces $1.8 Billion UK Lawsuit Over App Store Commissions

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Apple faces $1.8B UK lawsuit

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.