Apple will face a full trial in the UK over allegations it breached competition law by overcharging people for apps on its App Store, reports The Daily Mail.
This week London’s Competition Appeal Tribunal refused Apple’s attempt to limit a consumer claim led by Dr Rachael Kent, a lecturer in digital economy. Kent’s claim alleges that Apple breached the law by excluding competition and charging an unlawful level of commission on digital purchases in the App Store.
If the trial rules against Apple, 19.6 million consumers who purchased paid apps in the App Store since October 2015 would be entitled to a share of £1.5 billion in compensation, according to The Daily Mail. The trial will take place in London, likely in 2023 at the earliest, the article adds.
The lawsuit was filed in 2021. Apple’s 30% fee is “excessive” and “unlawful,” per the claimants.
“Apple is abusing its dominance in the app store market, which in turn impacts U.K. consumers,” Kent, the lead claimant in the case and a professor at King’s College London. Apple strongly disagrees, of course.
“We believe this lawsuit is meritless and welcome the opportunity to discuss with the court our unwavering commitment to consumers and the many benefits the App Store has delivered to the U.K.’s innovation economy,” Apple said in an emailed statement to Bloomberg. “The commission charged by the App Store is very much in the mainstream of those charged by all other digital marketplaces. In fact, 84% 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%.”
