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.
